Financing small and medium-scale contractors in developing countries: A Ghana case study

Alex K. Eyiah, Paul Cook

Research output: Contribution to journalArticlepeer-review


Little success has been achieved in financing assistant programmes for contractors in developing countries. This paper focuses on the experience of the Bank for Housing and Construction (BHC) of Ghana. Factors accountable for underachievement of its programme include: contractor's lack of managerial and technical capability; inability to obtain contracts; persistent delayed payments by major clients; and the deliberate refusal to repay loans. Suggestions offered for improving the effectiveness of programmes, on the academic and practical front, relate well with developments in small and medium-size enterprise (SME) finance. A survey in Ghana found that there was a strong desire to establish a contractors' bank. There would be the need for the contractors association to reform before it could play a meaningful role in the proposed bank. The importance of effective governance in achieving success cannot be overemphasized, likewise the role of government and donors in encouraging the setting up of a conducive regulatory framework.
Original languageEnglish
Pages (from-to)357-367
Number of pages10
JournalConstruction management and economics
Issue number4
Publication statusPublished - Jun 2003


  • Contractors
  • Developing countries
  • Finance
  • Ghana
  • SME

Research Beacons, Institutes and Platforms

  • Global Development Institute


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