Existing banking model could draw a dagger through Ghana’s 24-Hour Economy
BoG must facilitate productive-sector financing — or enable a specialised value-chain industrial bank Ghanaian banks are lending again, but where that money goes could determine whether the 24-Hour Economy delivers genuine industrial transformation or merely fuels another cycle of consumption and imports. Total bank advances rose by 38.6% to GH¢124.3 billion in June 2026, from […]
Ghana's banking model risks undermining its 24-Hour Economy. While bank lending has increased by 38.6% to GH¢124.3 billion in June 2026, the allocation of funds to productive sectors remains uneven. Manufacturing received 11.1% of private-sector credit, agriculture just 4.5%, while commerce and finance accounted for 31.4%. This disparity is concerning as interest rates drop, making banks more inclined to fund consumer loans and short-term commercial financing.
The mismatch in financing could lead to a 24-Hour Economy that fuels consumption rather than industrial transformation. The Bank of Ghana could play a catalytic role by facilitating a regulatory environment that encourages productive-sector financing, without becoming a direct lender. A dedicated Productive Sector and Value-Chain Finance Facilitation Unit could work with banks, development finance institutions, and other stakeholders to provide long-term industrial credit, equipment leasing, and other financing solutions.
Alternatively, a specialised Value Chain Industries Bank could be created, with participation from private investors and government, to provide patient, appropriately structured capital. Ultimately, credit must finance production, not just domestic consumption.
Written by urgent.news from Adom Online's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
