Ghana’s credit market is showing fresh signs of recovery as borrowing costs decline sharply and private sector credit growth accelerates, raising hopes that businesses could secure better financing conditions to expand operations, invest in new opportunities and create jobs.
Average lending rates have fallen from 30.25% in December 2024 to 15.7% in September 2026, while real private sector credit growth has surged to 26.4% at the end of September 2026, according to the Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama.
The figures point to a significant improvement in financing conditions following efforts to restore macroeconomic stability and ease pressures that previously made borrowing expensive for businesses and entrepreneurs.
Speaking at the launch of the Ghana in Numbers 2025 publication in Accra, Dr Asiama said the developments reflected progress in the country’s economic recovery, with lower lending rates and stronger credit growth offering renewed opportunities for private sector activity.
The improvement comes at a critical time when businesses are seeking affordable financing to support expansion, strengthen production capacity and respond to changing market conditions.
Lending Rates Fall as Credit Conditions Improve
The sharp decline in lending rates represents one of the most notable changes in Ghana’s financing environment, particularly for businesses that have struggled with high borrowing costs.
Average lending rates stood at 30.25% in December 2024 before declining to 15.7% in September 2026. This represents a reduction of 14.55 percentage points, potentially lowering the cost of accessing credit for eligible borrowers.
The decline could provide some breathing room for businesses that rely on bank financing to purchase equipment, increase inventory, establish new branches or meet working capital requirements.
High interest rates have traditionally made it difficult for many businesses, particularly micro, small and medium-sized enterprises (MSMEs), to secure loans without placing significant pressure on their cash flows.
With borrowing costs easing, businesses may find it easier to assess investment opportunities that were previously considered too expensive. However, the actual benefits will depend on individual lending terms, collateral requirements, credit assessments and the ability of borrowers to meet repayment obligations.
Dr Asiama highlighted the improvement in credit conditions, pointing to the sharp rise in real private sector credit growth.
“These gains are also reflected in improved credit conditions,” Dr Asiama said, noting that growth in real private sector credit had risen from less than 1% about two years ago to 26.4% at the end of September 2026.
The increase suggests that credit activity is recovering strongly after a period when real lending growth remained subdued.
Economic Stability Supports the Credit Recovery
The improvement in credit conditions comes alongside a period of easing inflation and relative exchange rate stability, factors that can influence the cost of borrowing and the willingness of financial institutions to extend credit.
Dr Asiama said inflation had remained in single digits for 13 consecutive months, while the exchange rate had shown relative stability despite external pressures.
“Inflation is low and has been in single digits for 13 consecutive months so far. The exchange rate is relatively stable, notwithstanding the external headwinds that we face. And of course, banking sector resilience has improved significantly over the past two years.”
Dr Johnson Pandit Asiama
Lower inflation can help reduce uncertainty around business costs, household purchasing power and future economic conditions. Exchange rate stability can also help businesses that depend on imported raw materials, machinery and other production inputs plan with greater confidence.
These conditions matter to lenders as well. When economic uncertainty declines, banks may be better positioned to assess borrowers’ repayment capacity and determine the risks associated with extending loans.
Nevertheless, lower inflation and improved stability do not automatically guarantee that every business will obtain credit at affordable rates. Banks must still consider creditworthiness, collateral, operating performance and the likelihood of repayment.
The challenge will be ensuring that the improving economic environment translates into meaningful financing opportunities for productive businesses across different sectors.
SMEs and Young Entrepreneurs Need Better Access
While the decline in lending rates offers encouragement, access to finance remains a major consideration, especially for smaller businesses and entrepreneurs who may lack sufficient collateral or an established credit history.
The Bank of Ghana is pursuing initiatives aimed at expanding financial inclusion and making formal financial services more accessible to groups that have traditionally faced difficulties accessing financial products.
“These efforts are intended to make formal financial services more accessible, more affordable and convenient, particularly for young people, for women, for the micro, small and medium-sized enterprises and underserved communities.”
Dr Johnson Pandit Asiama
Improved access to finance could help smaller enterprises acquire productive assets, manage cash flow pressures and build the capacity needed to compete in the domestic market.
Young entrepreneurs could also benefit from financing opportunities that allow them to turn business ideas into viable ventures. However, affordable loans alone may not be sufficient. Business development support, financial literacy, market access and relevant technical skills remain important to building sustainable enterprises.
Dr Asiama stressed the importance of developing the country’s young population into a productive economic force.
“Our large youth population presents a significant source of innovation and entrepreneurship. However, realising this demographic potential will depend on our ability to equip them with relevant skills, support enterprise development and create an enabling environment for investment.”
Dr Johnson Pandit Asiama
His remarks highlight the relationship between access to finance, entrepreneurship and employment creation, particularly as Ghana seeks to expand opportunities for its growing youth population.
BoG Turns Attention to Artificial Intelligence Risks
Beyond the improvement in lending conditions, the Governor disclosed that the central bank was developing a directive to regulate artificial intelligence in the financial sector.
The initiative reflects growing attention to the risks that could emerge as financial institutions increasingly adopt digital technologies to improve service delivery, automate processes and develop new products.
“We want to promote innovation but at the same time address the emerging risks that can evolve from this.”
Dr Johnson Pandit Asiama
The planned directive could become an important part of efforts to balance technological advancement with appropriate safeguards in the financial system.
As digital financial services expand, regulators face the task of ensuring that innovation does not expose consumers and institutions to avoidable risks.
Reliable Data Remains Central to Economic Decisions
Dr Asiama also emphasised the importance of reliable statistics in guiding monetary policy, financial regulation and investment decisions.
He commended the Ghana Statistical Service for bringing key economic and financial indicators together in the Ghana in Numbers 2025 publication.
The availability of dependable economic data helps policymakers assess emerging trends, financial institutions evaluate risks and businesses make decisions based on measurable conditions.
Ghana’s declining lending rates and stronger private sector credit growth provide encouraging signs for the business community. The next test will be whether these improvements translate into sustained investment, stronger enterprise performance and more employment opportunities.
Although the cost of borrowing has fallen considerably, maintaining economic stability and widening access to affordable finance will remain essential to ensuring that the recovery reaches businesses of different sizes.
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