In an exclusive interview with The High Street Journal, seasoned entrepreneur and former president of the Ghana Chamber of Commerce and Industry, Seth Adjei Baah, urged banks to rethink their approach to financing manufacturing businesses. He argued that the current preference for short-term trading returns is stifling industries that hold the key to job creation and sustainable wealth.
“Banks are more comfortable financing traders because they can see quick returns,” he explained. “But manufacturing is different; it takes about two to two-and-a-half years to set up a factory and get products to market. That requires patience and vision.”
This extended timeline, he noted, is precisely why lenders shy away from manufacturing ventures. Traders can rely on pre-orders and faster turnover, offering immediate repayment. Manufacturers, however, face heavier upfront investments, longer gestation periods, and uncertain early revenues. The entrepreneur insists that these challenges should not deter banks; instead, they should inspire a long-term perspective.
“Manufacturing is the backbone of job creation and wealth generation,” he said. “If banks only chase short-term profits, they miss the bigger opportunity of building industries that can transform the economy.”
His comments highlight a pressing challenge in Ghana’s financial sector. Banks play a vital role in stabilizing trade and imports, yet hesitation to take risks on manufacturing ventures is holding back industrial growth and the jobs and opportunities it could create. According to him, this mindset undermines the country’s industrialization agenda and keeps Ghana dependent on imports rather than building its own production base.
He also criticized government-backed initiatives that provide partial funding, noting that such arrangements often leave businesses stranded midway. “Government policies should not dictate banks’ involvement,” he stressed. “Lenders must be bold enough to grow with businesses, not just fund those already established.”
The entrepreneur pointed out that inconsistent government policies have made banks even more cautious, pushing them toward importers who can guarantee returns through pre-orders. This cycle, he argued, creates a dependency trap: the country continues to import finished goods instead of producing them locally, missing out on the multiplier effects of manufacturing such as job creation, skill development, and export competitiveness.
His call is not merely a critique but a roadmap for change. He envisions banks evolving beyond being mere financiers of trade to becoming true partners in industrial development. This could include designing loan products that match manufacturing cash flows, offering staged financing tied to production milestones, and providing advisory support to help firms scale. It also means accepting that early-stage manufacturing may look risky on paper but can deliver significant social and economic returns over time.
He concluded with a powerful message: banks must evolve beyond chasing quarterly profits and embrace the long-term vision of industrial growth. Supporting manufacturing, he emphasized, is not just about helping businesses succeed—it’s about securing economic stability and prosperity for the nation.
