Dr Kweku Arthur-Annobil, Manager, Business Strategy, Stanbic Bank Ghana, has urged Ghanaian banks to find innovative ways to support women-led businesses to cushion them amidst the current economic challenges.
Dr Arthur-Annobil said this during a multi-stakeholder engagement on enabling resilient women-led businesses in Ghana, as part of an ongoing research by Dr Richmond Lamptey, a Lecturer at the Cardiff Metropolitan University in Wales.
The research, supported by the British Academy aims to investigate and provide solutions to enhancing the resilience of women-owned businesses in Ghana, particularly in times of economic and social instability.
He noted that Non-Performing Loans (NPL) ratio, which had increased from 15 per cent in early January 2023 to nearly 30 per cent, reflected the prolonged effects of the economic difficulties from 2020.
‘Many businesses, particularly those facing macroeconomic challenges, are unable to repay their loans not due to fraud but because of genuine financial hardships.
Consequently, banks must innovate to support these businesses while managing liquidity issues and regulatory constraints,’ he said.
‘By doing so, banks can contribute significantly to the broader economic transformation and resilience of businesses, particularly in challenging times,’ Dr Arthur-Annobil, said.
On their part, he said Stanbic Bank has established partnerships with development financial institutions and financial technology (fintechs) companies to provide grants and concessionary loans to businesses.
‘To address the concerns of collateral-baked facilities, the bank supports micro-businesses with its Enterprise Smart Loans, which are collateral-free and focused on cash flows and business behaviour,’ he noted.
Dr Arthur-Annobil also stated that the bank, through its SB Incubator initiative, had several capacity building programmes tailored towards women-led business to enable them have sustainable businesses, and have access to loans.
He recommended prioritising good bookkeeping, noting that d
oing so, helped banks to understand the nature and dynamics of women-led businesses, and provide better support and advice to them.
‘This understanding is crucial for ensuring that the loan is used as intended, ultimately aiding in the business’ success and sustainability,’ the Business Strategy at Stanbic Bank, said.
He advocated for micro and small businesses to adopt growth-oriented mindsets, while leveraging technology to expand without the need for physical presence, which would make them withstand economic challenges and thrive.
The multi-stakeholder meeting brought together various stakeholders, including academics, business leaders, policymakers, and representatives from women’s organisations.
The participants discussed strategies, and shared insights on initiatives that could empower women entrepreneurs and ensure their businesses could withstand and thrive amidst challenges.
The research findings are expected to contribute significantly to policy recommendations and practical solutions that wil
l bolster the resilience and sustainability of women-led enterprises in Ghana.
Source: Ghana News Agency