Dr. Kweku Arthur-Annobil, Business Strategy Manager of Business and Commercial Banking at Stanbic Bank Ghana, has urged Ghanaian banks to find innovative ways to support women-led businesses, especially in the face of current economic challenges. Dr. Arthur-Annobil said this during a multi-stakeholder engagement on enabling resilient women-led businesses in Ghana.
Speaking on a panel discussion on the subject, Dr. Arthur-Annobil emphasized
the crucial role banks must play in supporting women-led businesses. He noted
that “Non-Performing Loans (NPL) ratio, which has increased from 15% in early
January 2023 to nearly 30%, reflects the lingering effects of the economic
difficulties from 2020 and 2021. 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.”
Highlighting existing beyond banking initiatives Stanbic Bank has put in place
to support women-led businesses, Dr. Arthur-Annobil mentioned partnerships with
development financial institutions and fintechs. Through some of these
partnerships, the bank is able to provide grants and concessionary loans to
businesses in difficult times. Additionally, the bank through its Incubator (SB
Incubator) has several capacity building programs tailored towards women-led
business. 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.
Dr. Arthur-Annobil also addressed the importance of documentation for securing
loans, explaining that it helps banks understand the nature and dynamics of a
business to provide better support and advice. This understanding is crucial
for ensuring that the loan is used as intended, ultimately aiding in the
business’ success and sustainability.
Emphasizing resilience and growth, Dr. Arthur-Annobil urged businesses to
separate their personal and business finances, a lesson reinforced by the
COVID-19 pandemic. He advocated for micro and small businesses to adopt
growth-oriented mindsets, leveraging technology to expand without the need for
physical presence. This approach, he argued, would enable businesses to
withstand economic challenges and thrive in the long term. Dr. Arthur-Annobil
further called for banks to embrace innovative solutions and support mechanisms
to bolster women-led businesses. By doing so, banks can contribute
significantly to the broader economic transformation and resilience of
businesses, particularly in challenging times.
The multi-stakeholder meeting was held as part of an ongoing research by Dr.
Richmond O. Lamptey, a Lecturer at the Cardiff Metropolitan University in
Wales. This research project, titled “Enabling Resilience of Women Businesses
During Turbulent Times in Ghana,” is supported by The British Academy and aims
to investigate and enhance the resilience of women-owned businesses in Ghana,
particularly during periods of economic and social instability.
The meeting brought together various stakeholders, including academics,
business leaders, policymakers, and representatives from women's organizations,
to discuss strategies, share insights, and collaborate on initiatives that can
empower women entrepreneurs and ensure their businesses can withstand and
thrive amidst challenges. The research findings are expected to contribute
significantly to policy recommendations and practical solutions that will
bolster the resilience and sustainability of women-led enterprises in Ghana.
Source: Peacefmonline.com