Absa Bank Ghana, through its Executive Director and MD of Retail and Business Banking, Kobla Nyaletey, has urged emerging recycling businesses in Ghana to adopt a phased growth approach, starting with smaller projects to cultivate investor confidence and secure financing. This advice comes in the wake of Ghana’s challenging macroeconomic conditions, which have historically made capital investment in real-sector enterprises less attractive for financial institutions compared to safer alternatives due to high interest rates.
Navigating Economic Headwinds
Mr. Nyaletey highlighted that Ghana’s macroeconomic environment, particularly the cost of capital which hovered around 25 to 30 percent approximately two years ago, presented significant hurdles for many businesses. This elevated cost made it difficult for businesses to sustain operations and for banks to justify investing in riskier ventures.
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