Suppliers can now heave a sigh of relief with the introduction of invoice factoring in Ghana, which is to ensure that they get paid on time when they have supplied goods and are awaiting payment – which in many cases takes forever.
CEO of Lynch Capital Frederick Nii Oto Dodoo told the B&FT that issues of finance continue to impede the growth of indigenous businesses and companies within the supply chain process in Ghana, despite government intervention in promoting industrialisation and job-creation.
If not checked, the situation could erode the gains that are expected to be made in local content in various sectors, he said.
Appearing on the ‘BFT Chat’, Mr. Dodoo said: “Funding is one challenge for suppliers and businesses involved in the supply chain in Ghana, and this has contributed to some companies becoming insolvent. I must say suppliers have had to wait for between 30 and 300 days before they get paid for work or goods they have supplied.