Finance Minister Dr Cassiel Ato Forson has urged banks to channel more credit to productive sectors of the economy as government takes steps to reduce its dependence on domestic borrowing.
Speaking on behalf of the Finance Minister, Director of the Financial Sector Division at the Ministry of Finance, Louis Kwame Amo, said the banking industry must play a stronger role in financing businesses that expand production, boost exports and create jobs.
He said although maintaining macroeconomic stability remains a key priority, Ghana must now focus on transforming the economy into a more productive, competitive and export-oriented one, with greater private-sector participation.
“Stability itself is not the destination. Stability is the platform. Transformation is the destination,” he said.
Mr Amo was speaking at the commissioning of Absa Bank Ghana’s new head office on Friday, September 25.
He explained that the call forms part of government’s New Economy programme, which seeks to build on recent macroeconomic stabilisation while working with the private sector and other stakeholders to strengthen productive areas of the economy.
According to him, government’s decision to reduce its presence in the domestic financing market should create additional space for banks to extend credit to private businesses.
He therefore encouraged financial institutions to prioritise lending to enterprises involved in manufacturing, agriculture and agro-processing, exports, technology and other activities capable of generating employment.
“We need more credit to go to businesses that produce, businesses that export, businesses that manufacture, businesses that employ young people, businesses that process what we grow here in Ghana, businesses investing in technology and businesses building Ghana’s new economy,” he said.
He said stronger collaboration between the banking sector and productive businesses would be critical to sustaining economic transformation and creating more opportunities for private-sector growth.
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