The Association of Ghana Industries (AGI) says its members will not be affected by the closure of 347 microfinance companies in the country.
The AGI insists the high-interest rates charged by microfinance institutions make it impossible for the businesses to borrow from them.
“Getting money from the microfinance is not good for any industry. Most of the people who get money from the microfinance houses are traders.
You cannot borrow money from any microfinance to finance your productivity in any industry.it won’t work, because the high-interest rate at the end of it your cost of production will be high so it will not work for us,” President of the AGI, Dr. Yaw Adu Gyamfi told Citi Business News in an interview.
“I don’t think that the closure of these microfinance houses is going to affect most industries. Mostly it will affect the traders, but not manufacturers” he added.
The Bank of Ghana recently closed down over 347 microfinance houses for failing to meet various requirements.
Dr. Yaw Adu Gyamfi in has therefore called for a system that will help reduce the high-interest rates charged by microfinance companies.
He spoke to Citi Business News at the launch of the 8th AGI Ghana Industry and Quality Awards.
This year’s awards scheme is on the theme “Positioning Ghanaian Industries for Global Competitiveness”.