|
Getting your Trinity Audio player ready...
|
Traders at the Kotokuraba Central Business District of the Central Regional capital, Cape Coast have applauded President John Dramani Mahama for his commitment to establish a women’s Development Bank.
They described the move as a momentous change for women entrepreneurs and a testament to promoting gender equality and economic empowerment for all women regardless of political inclination. Presenting the 2025 budget statement at the floor of Parliament on Tuesday, Dr Cassiel Ato Forson, Minister of Finance announced commitment to establishing a Women’s Development Bank, allocating GHS 51.3 million (approximately USD 3.3 million) as a seed fund for the initiative.
This bank aims to provide low-interest loans specifically to offer financial inclusion and access to capital to support women-owned and women-led businesses, facilitating their growth and development. The women’s bank is expected to provide financial inclusion and empowerment to women, offering them access to capital, training, and resources to grow their businesses.
The traders who were listening to the budget translated in Fante on a local FM station, in separate interviews with the Ghana News Agency lamented how the traditional banks perceive traders, particularly those in the informal sector, as high-risk borrowers, leading to stricter loan terms and higher rates. Wearing a cowboy hat to protect her from the blazing sun rays, Madam Felicia Mensah, a second-hand clothes dealer expressed joy, and cited challenges she faced in accessing credit from traditional financial institutions.
She said: “Many of us lack the collateral required to secure loans, and high-interest rates make borrowing costly, often resulting in heavy debt burdens. “There are also strict credit-scoring criteria that exclude traders with limited or no credit history, while bureaucratic and lengthy application processes requiring extensive documentation further complicate access.
“These challenges are compounded by the limited financial inclusion of informal traders, who often cannot access traditional financial services.” For a 35-year-old tomato seller, Madam Richlove Okyere, it was her prayer that the bank would have flexible and less cumbersome loan acquisition processes to ease repayment considering the economic challenges.
According to her, many traders lack of financial literacy hindered their ability to navigate loan processes or manage debt effectively, requiring financial education to their money to good use. “We are thrilled that President Mahama has kept his promise to establish a women’s bank,” said Madam Ama Owusu, a bread seller.
“This bank will be a lifeline for us, providing us with the financial support we need to expand our businesses and improve our livelihoods.” Other traders echoed Madam Ama’s sentiments, highlighting the importance of financial inclusion in empowering women and promoting economic growth. “The women’s bank will benefit us as traders and contribute to the overall development of our community,” said Madam Akua Mensah, another trader.
The bank is expected to be operational soon, with branches in various regions, including Cape Coast. As the traders in Cape Coast look forward to the benefits of the women’s bank, they also called on the government to provide additional support for women entrepreneurs, including training programs, mentorship initiatives, and access to markets. “We believe that the women’s bank is just the beginning,” said Madam Mensah, adding: “We need more initiatives that will help us grow our businesses and achieve our full potential.”
Source: GNA
