THE IMPACT OF BANK CREDIT ON THE OPERATIONS OF THE MANUFACTURING COMPANIES IN GHANA

Abstract

The manufacturing sector continues to play a pivotal role in the developmental agenda of the country. It constitutes a chunk of the informal sector and therefore becomes a formidable force to reckon with in the economic outlook of the country. The Association of Ghana Industries (AGI) continues to complain about finance being the main challenge to the growth of the sector. Some interventions have been made by the central government by soliciting concessionary rated funds to help the sector yet the AGI believes if the local banks were a bit more flexible with their lending conditionality’s the fortunes of the sector will be greatly enhanced. The study therefore attempted to investigate the impact of bank credits on the operations of the manufacturing sector with Fan Milk Limited as the study area. In gathering data for the study the questionnaire technique was adopted and purposive sampling method enabled the researcher to directly approach officials within the functional departments of the company to solicit the requisite information.