BoG Governor urges banks to redesign loans for agriculture-focused SMEs

Dr Johnson Pandit Asiama, the Governor of the Bank of Ghana (BoG), has called on banks to develop more innovative and flexible credit products to assist small and medium-sized enterprises (SMEs) in Ghana's agricultural sector. Despite improvements in Ghana's economic conditions and a notable rebound in credit creation, many agricultural SMEs continue to face difficulties accessing financing, largely due to banks' perception of these businesses as relatively high risk.

Speaking during a meeting with Chief Executive Officers and heads of banks, Asiama highlighted the recent developments in the economy and the banking sector. He emphasized that banks must move beyond traditional lending methods and gain a deeper understanding of the sectors and businesses they finance. "As banks, you are not merely financial intermediaries, you are important business partners in the growth and transformation of the economy," Asiama stated.

He specifically urged banks to design loan products that reflect the seasonal nature of agricultural activities and align repayment schedules accordingly. This approach would enable SMEs to secure financing under terms that better reflect the realities of their operations. The improvement in financial conditions in Ghana presents an opportunity for banks to expand their support for productive sectors, according to Asiama.

Credit creation in the private sector grew by 41.2% in June 2026, up from 8.6% in the same period last year, with real private sector credit growth at 34.1%. Asiama noted that the moderation of interest rates in the money market has begun to translate into stronger credit flows to the private sector, alongside broader improvements in the banking sector, including stronger capitalisation and asset quality.