CalBank holds clinic for SMEs in Kumasi
Business owners in Kumasi have pleaded with the Development Bank of Ghana (DBG) to reduce the interest on its loans to the bank to enable them to access loans at cheaper rates.
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They said if the banks were getting the capital at a reduced rate, the banks would also be in a position to lend to them at a cheaper rate to enable them to also borrow to expand their businesses.
Securing loans from the DBG at a rate of more than 20 per cent would not augur well for the businesses and, therefore, they pleaded with the management of DBG to get their board to review their rates.
Business clinic
These were some of the concerns of the small and medium enterprises that attended the CalBank/DBG SME Engagement in Kumasi.
The clinic was to build the financial resilience of the SMEs and expose them to some of the products of the banks.
The comments from the businesses followed a presentation by Maame Ahemba Wilson, a representative from DBG, on the financing opportunities at DBG.
Ms Wilson said DBG “does not deal directly with the SMEs but does so through the banks” and was currently financing specific projects in the agriculture sector.
She said currently, the bank was financing businesses in the poultry, maize, soya and rice value chains sector and businesses within the hospitality and tourism sector.
She explained that the bank was mainly into providing finance to the commercial banks for onward lending to SMEs.
Ms Wilson added that the bank's rates were reviewed quarterly and the current rate was around 20.6 per cent.
The SMEs found that to be on the higher side, particularly when the bank was set up to provide financing to the SMEs for development.
Objective
The Managing Director of CalBank PLC, Philip Wiredu, explained that the SME clinic was to strengthen the bonds between the banks and their customers and to collectively progress.
He said this year, the focus was to help the business to be prepared for bank financing and to guide them on how to efficiently manage their business debts as a precursor to debt repayment.
“These subjects have been meticulously selected, considering the dynamic nature of the market and the challenges faced by businesses,” Mr Wiredu indicated.
Other topics discussed included separating personal finances from business funds in small business financial management; navigating the current economic challenges and using digital banking solutions to drive business growth.