The Association of Ghana Industries (AGI) has cautioned that Ghana’s ambition to operate a 24-hour economy could struggle to achieve its full potential without a major shift in how businesses access long-term financing.
The Chief Executive Officer of the AGI, Seth Twum-Akwaboah, said the success of the initiative depends largely on the ability of manufacturers to secure affordable credit that matches the long-term nature of industrial investments.
According to him, while the recent decline in lending rates is a welcome development, the current structure of financing available to businesses remains unsuitable for companies seeking to build factories, acquire equipment and expand production capacity.
Speaking on Channel One TV’s Quarterly Economic Review programme on Thursday, July 9, 2026, Mr Twum-Akwaboah explained that manufacturing businesses require patient capital because industrial projects often take several years before becoming profitable.
He argued that traditional short-term commercial loans offered by many banks do not align with the realities of industrial expansion, where businesses need adequate time to establish operations, develop markets and begin generating returns.
“If you are doing long-term, which is a medium- to long-term facility, five years, 10 years, you need a kind of financial arrangement that interest rate is even supposed to be lower than this. And then enough moratorium, and you have enough time to actually produce,” he said.
The AGI CEO noted that setting up manufacturing facilities involves lengthy processes, including construction, installation of machinery, testing of production systems and market development.
He said expecting businesses to begin loan repayments immediately after completing factory construction could put unnecessary pressure on investors and discourage industrial growth.
“The government is doing a 24-hour economy; for you to set up a factory, go through the process, raise funds, the factory construction alone will take you six months, one year, even if you are fast,” he explained.
Mr Twum-Akwaboah added that businesses need sufficient time to stabilise production and build customer networks before they can comfortably service long-term loans.
He therefore called for a stronger development finance framework to provide industries with the type of capital required for expansion.
Although he acknowledged the existence of institutions such as the Development Bank Ghana (DBG) and the Ghana Export-Import Bank (EXIM Bank), he said their effectiveness in meeting the financing needs of industries must be reviewed.
“I know DBG has been established, EXIM Bank is there, but all these have to be interrogated because we are still not getting access to the kind of critical development funding arrangement to support the capital,” he said.
The AGI CEO stressed that reducing interest rates must be complemented by reforms in the lending structure to ensure businesses can access affordable and flexible financing capable of supporting industrialisation and job creation.
