Businesses
that fail to take bank loans within limits risk losing their investments,
observed Elsie Enninful-Adu, Chief Executive Officer of Parkstone Capital, an investment
management firm.
She
has charged Ghanaian businesses to begin looking at equity and venture capital
financing if they are to stay competitive and remain in operation.
According
to her, over $100million is available for investment in Ghana alone, mostly in
the categories of venture capital, private equity and impact investing.
“Going
for loans is only one option that businesses have but it’s important for
businesses to recognize that they have several options therefore they need to
access all the options available before they choose one,” stated Mrs.
Enninful-Adu.
She
says businesses that are well positioned can access investments between $50,000
and $3million from 16 identifiable private equity firms actively investing in
businesses in Ghana.
Equity
financing, she noted, demands no collateral and investors have interest in
profitability, hence engage in constant strategizing to ensure growth of
business.
The
investment banker spoke on “Availability and Access to Financial Products other
than Credit” at a forum in Kumasi which focused on the state of the private
sector in Ghana.
The
Private Enterprise Federation (PEF), the lead advocate for the promotion of
private sector interests, organized the forum with the support of the Konrad
Adenauer Stiftung.
The
Forum provided opportunities for wide range of stakeholders including business
operators, trade and business associations, farmer-based organizations and
professional bodies to discuss issues affecting the private sector.
Chief Executive Officer of the
PEF, Nana
Osei Bonsu, says recommendations arising from the forum will
be collated into a Policy Brief to engage government on issues impacting on the
private sector.
The
Federation is accessing a $1.5million Grant to train 2,200 business in best
practices within the next four years.
Story
by Kofi Adu Domfeh
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