The savings culture of most Ghanaians has taken a hit due to ongoing economic challenges such as a depreciating local currency, high interest rates, and surging inflation.
These challenges are impacting Ghanaians of all age groups, severely limiting investment opportunities due to steep interest rates for borrowing in both the public and private sectors.
In response to the high interest rates, the Founding President of the policy think-tank, IMANI Africa, has proposed an unconventional solution.
He suggests that borrowing from loan sharks may be a more viable option than borrowing from banks with excessively high interest rates.
Franklin Cudjoe, in a post shared on X on May 22, also criticized President Akufo-Addo’s recent remarks about his legacy, suggesting that it falls short of being enviable during his 7-and-a-half-year tenure in office.
“Borrowing from loan sharks may be more favorable than borrowing from banks in Ghana. 55% interest rates and Nana Addo says he has left an enviable legacy?” Franklin Cudjoe wrote.
Businesses, particularly in the private sector, have expressed concern over the high interest rates and have constantly asked the government and Central Bank to enact policies aimed at lowering lending interest rates.
The private sector, which frequently depends on loans for business operations, has been pushed out as a result of this circumstance.