At Kumasi’s Anloga Onion Market, traders say 22–33% interest on business loans is not financing — it is a death sentence
As Ghana debates high interest rates at the national level, traders at one of the country’s busiest onion markets say the reality on the ground is far more brutal.
At Anloga Onion Market in Kumasi, small importers say commercial bank loans look attractive on paper but are suffocating their businesses in practice — and many have simply stopped trying.
Hamidu Abdullahi, an advisor at the market, puts it plainly.
“When we go to the banks, the interest they charge is too much for us so we don’t usually want to use their services,” he said. “When you go for a loan, the interest they charge might overwhelm you and leave you in debt — and the sad thing is, they will end up harassing your wife or family members.”
The Numbers Don’t Add Up
Commercial banks in Ghana charge between 22% and 33% on business loans. For onion importers operating on thin margins, traders say those rates are already difficult to absorb. But the deeper frustration is not just the cost , it is the timing.
Onion importers travel supply routes that can stretch up to a month. By the time they return, offload their stock, and collect payment from retailers, their loan repayment window has already closed.
“We also don’t like bank loans because of the duration — how lengthy the journey is,” Abdullahi said. “At times you’ll go for a loan and by the time you undertake the journey and come back, the repayment is already due so it doesn’t help.”
He is asking banks to extend repayment periods or allow instalments.
“The journey is not a small one. It can take up to a month and by the time you’re back, you now have to give the goods to traders for them to sell and give you your money, then you go and repay. It is not an easy one.”
A National Conversation, A Local Reality
The frustration at Anloga sits within a wider national debate. The Concerned Farmers Association of Ghana has previously pushed for interest rates as low as 2% for farmers. President John Mahama has called for single-digit lending rates to boost production. Under the 24-Hour Economy agenda, government plans to introduce SME loans ranging from 8% to 12%, in collaboration with the Bank of Ghana and the Development Bank Ghana.
But at Anloga, traders say they are yet to feel any of that impact.
Instead, many survive on personal savings, informal credit, and trust-based arrangements with suppliers — a fragile system that leaves little room for error and no cushion when a shipment is delayed or prices fall.
Survival, Not Expansion
For these traders, the ask is not complicated. It is affordable rates, flexible repayment terms, and credit that understands how their trade actually works.
Because at 30% interest with a rigid repayment window, expansion becomes a luxury. Survival becomes the only goal.
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