Ghana’s private sector credit has recorded a dramatic 41.2% growth in June 2026, marking a major turnaround in lending activity and signalling stronger confidence in the country’s improving economic conditions.
The latest figures, announced by Bank of Ghana Governor Dr. Johnson Asiama, show a sharp acceleration from the 8.6% growth recorded during the same period in 2025. In real terms, private sector credit expanded by 34.1%, underscoring the scale of the recovery in financing available to businesses.
The development comes at a crucial moment for Ghana’s economy, as falling inflation, easing financial conditions and stronger economic growth create an increasingly favourable environment for businesses and financial institutions.
Credit Growth Records Massive Jump
According to Dr. Asiama, financial conditions have eased significantly, with interest rates across various segments of the money market continuing to moderate.
He explained that these developments are now beginning to translate into stronger credit flows to the private sector, describing the latest expansion as a significant development for the economy.
“Financial conditions have eased significantly. In the money market, interest rates have continued to moderate across various market segments. These developments are beginning to translate into stronger credit flows to the private sector,” he said.
The 41.2% growth represents a major improvement compared with the relatively modest expansion recorded a year earlier. It suggests that businesses are increasingly accessing financing to support working capital, expansion, investment and other economic activities.
For Ghana’s private sector, stronger credit availability could provide an important boost to business confidence and investment.
BoG Wants Banks to Lend More
Despite the sharp increase in credit creation, the Governor believes more can be done to ensure that financing reaches businesses that need it most.
Dr. Asiama urged banks to take advantage of the improving economic environment by expanding access to finance and developing products that respond more effectively to the realities of borrowers.
His comments come as the Bank of Ghana seeks to ensure that improved macroeconomic stability does not remain confined to financial indicators but translates into stronger economic activity and wider access to funding.
The Governor stressed that banks must deepen their understanding of the businesses and sectors they serve.
He argued that financial institutions should move beyond conventional lending models and develop innovative approaches that allow more businesses to qualify for credit.
SMEs Still Struggle to Access Funding
While overall private sector credit has surged, the Governor highlighted a major concern surrounding small and medium-sized enterprises.
Many SMEs, particularly those operating along the agricultural value chain, continue to face difficulties securing bank financing because lenders often perceive them as relatively high-risk borrowers.
“Many SMEs, particularly those on the agricultural value chain, still struggle to access finance, just because banks continue to perceive these businesses as relatively high risk.”
The challenge is particularly significant for agricultural businesses because their revenues and cash flows often depend on production cycles, harvest periods and seasonal market conditions.
Dr. Asiama therefore called on banks to develop financing structures that reflect these realities.
Seasonal Loans Could Transform Agricultural Financing
The Governor specifically encouraged banks to design flexible repayment arrangements for businesses whose income fluctuates according to seasonal cycles.
Such products could allow agricultural businesses to repay loans when they generate stronger cash flows rather than being forced into rigid monthly repayment structures that may not reflect their operational realities.
“This should include developing innovative and flexible credit products that recognise the seasonal nature of agricultural activities and align loan repayment schedules with the timing and pattern of borrowers’ cash flows.”
Dr. Asiama
Such an approach could potentially unlock financing for thousands of businesses that are currently excluded from traditional credit facilities.
It could also help strengthen Ghana’s agricultural value chain by providing businesses with the capital needed to purchase inputs, expand production, process commodities and reach larger markets.
Stronger Banking Sector Provides Room for Lending
The surge in private sector credit is occurring alongside significant improvements in the banking sector.
Total banking sector assets increased by 30.7% in June 2026, while the industry’s capital adequacy ratio rose sharply to 20.4%, compared with 10.6% a year earlier.
The banking industry has also recorded an improvement in asset quality. The non-performing loan ratio declined to 16.1% in June 2026, from 23.1% during the same period in 2025.
These developments point to a stronger banking sector with improved capital buffers and declining credit risks.
For the BoG, the improved resilience of banks should create greater room for financial institutions to support businesses and households through increased lending.
Economic Recovery Creates Fresh Opportunity
Ghana’s broader economic performance is also providing support for the credit expansion.
Real GDP growth reached 6.4% in the first quarter of 2026, reflecting stronger activity across key sectors of the economy.
Inflation has also eased considerably. Headline inflation fell to 4.6% in July from 5.3% in June, providing further evidence of the significant disinflation achieved over the past year.
The Monetary Policy Committee has maintained the policy rate at 14%, with the central bank indicating that the current stance remains appropriate as it monitors domestic and global developments.
The combination of stronger growth, lower inflation and improving banking sector conditions could create an important window for businesses seeking financing.
Banks Told to Become Growth Partners
Dr. Asiama’s message to banks goes beyond simply increasing loan volumes. He wants financial institutions to become active partners in Ghana’s economic transformation.
“As banks, you are not merely financial intermediaries, you are important business partners in the growth and transformation of the economy,” he stated.
The call places greater responsibility on banks to ensure that credit reaches productive sectors capable of generating jobs, increasing output and supporting long-term economic growth.
With private sector credit now growing at 41.2%, the immediate challenge will be ensuring that the lending boom is sustainable, productive and accessible to businesses across different sectors.
If banks can successfully bridge the financing gap facing SMEs, particularly agricultural businesses, the latest credit surge could become more than a banking sector statistic. It could become a major catalyst for Ghana’s next phase of economic expansion.
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