Private sector credit grows 41.2%; BoG governor urges banks to deepen lending

Private sector credit in Ghana surged by 41.2% in June 2026, marking a stark contrast to the 8.6% growth seen in the same period last year. This upward trend, stemming from easing financial conditions, saw real private sector credit expand by 34.1%, according to Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG). Speaking to CEOs and bank executives, Dr. Asiama highlighted that the moderation in market interest rates has contributed to stronger credit flows in the private sector.

He characterized this surge as a "significant development," particularly under the backdrop of declining inflation and stable financial conditions.

Despite this positive momentum, Dr. Asiama cautioned that many small and medium-sized enterprises (SMEs), especially those in the agricultural sector, continue to grapple with access to financing due to banks' perception of higher risk. To address this, he urged banks to deepen their knowledge of the businesses and sectors they cater to, and to innovate flexible credit products that better suit borrowers' needs, particularly considering the seasonal nature of agricultural activities.

He emphasized the importance of banks stepping beyond their traditional role as financial intermediaries, instead becoming vital partners in Ghana's economic growth and transformation.

Recent macroeconomic indicators further underscore the favorable environment. Real GDP growth accelerated to 6.4% in the first quarter of 2026, while headline inflation fell to 4.6% in July, down from 5.3% in June. The Monetary Policy Committee has maintained the policy rate at 14%, deeming the current stance suitable as the bank monitors the evolving economic and geopolitical landscape.

Additionally, the banking sector demonstrates resilience, with total banking sector assets rising by 30.7% in June 2026 and capital adequacy ratios improving to 20.4% from 10.6% a year earlier. The non-performing loan ratio also decreased to 16.1% in June, reflecting greater financial stability.

These developments position the Bank of Ghana to leverage the improved macroeconomic stability for broader economic activity and enhanced access to finance, underscoring the crucial role banks play in Ghana's ongoing economic transformation.