The Member of Parliament for Assin North in the Central Region, James Gyakye Quayson, has identified foreign banks as the biggest problem facing Ghana and the African continent, particularly in the financial sector.
According to the NDC lawmaker, the operations of foreign banks are burdening indigenous businesses rather than supporting them.
Speaking to the media, Mr. Quayson decried the high interest rates on loans — ranging from 20 to 30 percent — which he said are wiping off the profits of local businesses.
He contrasted this with interest rates in Western countries, where the same foreign banks offer as low as five percent, thereby boosting businesses abroad at the expense of Africa.
“The biggest problem we have in Ghana, in the financial sector, as well as Africa in general, is because we are dealing with foreign banks. These foreign banks come to our continent and establish their own terms and conditions. And the terms and conditions are so harsh that it’s almost impossible for any businessman to succeed,” he said.
“They care about what they’re going to get out of us. The problem we have is mainly about collateral. I mean, you’re starting a business — what do you have as collateral apart from maybe your land or estate? And they are not willing to compromise,” he added.
Mr. Quayson continued, “Look at the interest rate. With some of our banks, I hear 24%, 28%, 30%, while in the West, they are enjoying 5%. So they are collecting everything the business person should have been earning to grow the business.”
