The first deputy governor of the Bank of Ghana (BoG), Dr. Maxwell Opoku-Afari, has expressed optimism that commercial banks’ credit to the private sector will witness a significant increase in the near future.

This positive outlook follows the government’s progress in its ongoing debt restructuring program, a crucial step towards economic recovery.

In a statement addressing the plans to navigate Ghana out of its economic crisis, Opoku-Afari emphasized the need for businesses to capitalize on the current situation and reevaluate their operational strategies. “I agree — we need to take advantage of this crisis to change the way we do business. Nobody wants to waste the crisis,” he remarked.

The deputy governor highlighted the expected role of commercial banks in this transitional phase. As the government nears completion of its debt restructuring program, Opoku-Afari anticipates that banks will conduct thorough audits of their books and reevaluate their balance sheets. This, he believes, will prompt them to recognize the emerging stability and consequently increase their credit levels to the private sector.

“We, as a central bank, are very optimistic that once we are able to solidify and consolidate these [economic recovery] gains, the banks will begin to increase their credit into the private sector,” Opoku-Afari affirmed.

Over the past year, Ghana’s central bank has implemented measures to address economic challenges, including raising interest rates to curb inflation. Opoku-Afari explained that these steps were taken to navigate the country through the economic turbulence successfully.

Efforts are currently underway to consolidate the gains achieved during the recent economic crisis. Opoku-Afari commended Ghana’s progress in containing the crisis and acknowledged the emerging economic stability. “Ghana has really done a lot now to be able to contain this crisis and to be able to turn things around. We’re beginning to see economic stability taking shape,” he noted.

The Way Forward

In outlining the way forward, Opoku-Afari stressed the importance of consolidating the gains made to better prepare for the future. “What we need to do now is to consolidate against the gains we’ve made and make sure that [they are] well anchored to better prepare for the future,” he added.

As Ghana focuses on stabilizing its economy, the assurance from the Bank of Ghana signals a positive trajectory, offering hope for increased financial support to the private sector and, consequently, fostering overall economic growth.

In addition to the measures taken by the central bank, Opoku-Afari emphasized the collaborative efforts required from both public and private sectors to ensure sustained economic recovery. He highlighted the significance of a united approach in implementing policies and strategies that will contribute to long-term stability.

Opoku-Afari called for increased cooperation between government entities, financial institutions, and businesses, emphasizing that a cohesive and coordinated effort is essential to overcome the challenges posed by the economic crisis. By fostering collaboration, Ghana can leverage its recent achievements and establish a resilient economic foundation that not only withstands future uncertainties but also propels the nation towards sustainable growth and prosperity.