Following the central bank’s recent decision to slash the policy rate from 18% to 15.50%, the Ghana Union of Traders’ Associations (GUTA) has intensified its call for the Bank of Ghana (BoG) to accelerate monetary interventions aimed at achieving single-digit commercial lending rates.
Speaking in an interview, GUTA President Clement Boateng emphasized that for the government’s 24-Hour Economy and Big Push initiatives to succeed, the cost of capital must become globally competitive.
“That was something that the governor said, and I was very happy about it. But we think it should be fast-tracked. The governor shouldn’t wait for the near end of his term before lending rates can be accessed at a single digit. Processes must be fast-tracked so that maybe in the next year or two, lending rates must be ticking or must get to a single digit”
Clement Boateng, GUTA President
While the trading community views the policy rate reduction as a positive signal – a significant step toward the “Resetting” of Ghana’s financial landscape, they maintain that the pace of transmission to commercial banks remains too slow to provide immediate relief to struggling businesses.
Mr. Boateng noted that Ghanaian traders have historically battled some of the highest borrowing costs in the sub-region, often exceeding 25-30% at the commercial level, which has rendered local enterprises less competitive against cheaper imports from Asia and the UAE.
He also pointed out that the push for single-digit rates is supported by a notable improvement in Ghana’s macroeconomic indicators.
As of early 2026, inflation has cooled to approximately 5.8%, and the Cedi has maintained a period of relative stability against the US Dollar. GUTA argued that these conditions provide the Bank of Ghana with the necessary “fiscal space to be more aggressive in its rate-cutting cycle.”
According to the association, the current gap between the policy rate and commercial lending rates – often referred to as the “spread” – remains unacceptably wide. Traders are urging the Governor of the Bank of Ghana to not only lower the benchmark rate but to also implement regulatory pressure on commercial banks to ensure these cuts are passed on to the private sector.
Constraints on SME Expansion
Mr. Boateng cited the high cost of credit as the primary bottleneck for Small and Medium-sized Enterprises (SMEs), which constitute over 80% of Ghana’s business community.
Without affordable financing, the transition toward import substitution – a key pillar of the Ministry of Trade, Agribusiness and Industry (MoTAI) – remains stalled. Many traders are eager to transition from retail into light manufacturing but are deterred by the prohibitive interest payments required to fund equipment and factory setups.
According to Mr. Boateng, economic analysts and stakeholders suggest that achieving single-digit lending would trigger a massive wave of private-sector investment, particularly in the agribusiness and manufacturing sectors.
“Businesses have long complained about tight credit conditions and high borrowing costs, which continue to constrain expansion and investment. Many are now hopeful that recent improvements in macroeconomic indicators, particularly easing inflation and relative currency stability, will create room for further reductions”
Clement Boateng, GUTA President
This aligns with the national strategy to leverage the AfCFTA and the newly secured duty-free access to the Chinese market, both of which require high-volume production that can only be financed through low-interest credit.
GUTA’s timeline for this transition is ambitious, seeking a realization of single-digit rates within the next 24 months. This window is critical as the country seeks to cement its recovery and drive industrial growth.
The association’s leadership remains optimistic that if the BoG maintains its current trajectory while addressing the structural inefficiencies in the banking sector, the “single-digit dream,” could become a reality by the end of 2027.
The traders’ union signaled its intent to keep the pressure on the central bank, noting that affordable credit is the “oxygen” required for the Ghanaian economy to breathe again. As the Mahama administration continues its “Reset Agenda,” the synchronization of monetary and fiscal policy will be the ultimate test of the country’s economic resilience.
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