Existing banking model could draw a dagger through Ghana’s 24-Hour Economy
Total bank advances jumped 38.6 percent to GH¢124.3 billion in June 2026, from GH¢89.7 billion a year earlier, while private-sector credit expanded 41.2 percent. Yet the structure of lending shows that the productive sectors expected to drive the 24-Hour Economy continue to receive relatively small shares of private-sector credit.
Ghana's banking sector is experiencing significant growth, with total bank advances rising 38.6 percent in June 2026 compared to the previous year. However, the allocation of these funds raises concerns about whether the 24-Hour Economy will drive industrial transformation or merely perpetuate consumption and imports. While private-sector credit has expanded by 41.2 percent, manufacturing and agriculture sectors receive relatively small shares of this credit.
This imbalance could lead to capital migration towards consumer loans, personal credit, and short-term commercial financing, hindering productive investment in critical sectors. The Bank of Ghana must facilitate appropriate financing structures for productive value chains, rather than merely lending money. A dedicated Productive Sector and Value-Chain Finance Facilitation Unit could work with banks and other stakeholders to provide long-term industrial credit, equipment leasing, and export credit.
Alternatively, a specialized industrial bank could be established with a focus on financing productive value chains, potentially involving private investors and government partners. Both approaches could help ensure that the expansion of private-sector credit translates into productive investment, employment, and exports, rather than merely fueling domestic demand without corresponding production growth.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
