In an exclusive interview with the Ghanaian blogger Fiifi Adinkra, Erasmus Osei Owusu, popularly known as Osewus, opened up about a couple of frustrating experiences local business owners like him are going through with financial institutions here in Ghana.
Osewus, a veteran in Ghana’s entertainment industry with over two decades of experience, has made significant contributions to both the film and music sectors. His journey in the movie industry began in 2003, and since then, he has produced, directed, and distributed over 100 movies. These include popular titles like “Obi de3 Aba” and “Nyame Bekyere,” which have resonated with audiences both locally and internationally. Beyond movies, Osewus has also ventured into music production, working with renowned Ghanaian artists like Daddy Lumba and Okyeame Kwame.
However, despite his success, Osewus has encountered significant challenges when trying to secure financial support for his business ventures. In the interview, he expressed his frustration with how banks treat local businesses when it comes to loan acquisition. “You can work with a bank for years, maintaining a cordial relationship with no issues,” he said. “But when it comes time to ask for a loan, the process suddenly becomes a nightmare.”
Osewus explained that banks often impose unexpected and burdensome requirements on loan applicants. For instance, they may demand a land lease as collateral, a process that can be both stressful and time-consuming. Additionally, despite having no previous concerns about a business’s location, banks may suddenly require detailed information about the business and residential addresses of the owner when a loan application is submitted.
One of the most frustrating aspects, Osewus noted, is the demand for multiple guarantors. In some cases, banks even require that applicants leave a substantial amount of money most often more than half of the requested loan amoun to be deposited in their accounts before considering the loan. “These practices create unnecessary hurdles for local businesses,” he lamented.
Osewus emphasized that these challenges are not just personal but reflect broader systemic issues that hinder the growth of local businesses. He pointed out that while local entrepreneurs struggle to access loans, foreign-owned businesses often enjoy quicker and easier access to financial support. This disparity, he argued, puts local businesses at a disadvantage and can have a detrimental impact on the economy, as profits from foreign-owned enterprises are frequently repatriated to their home countries.
The frustrations shared by Osewus highlight the urgent need for reform in Ghana’s banking sector. For local businesses to thrive and contribute meaningfully to the national economy, banks must adopt more supportive and equitable practices. Osewus’s story is a powerful reminder of the challenges that many Ghanaian entrepreneurs face, and it underscores the need for change to ensure that local businesses have the opportunities they need to succeed.
Osewus recommends a standardized system in loan application to ease application for local business
