Cost of capital for Ghanaian businesses falling - Ato Forson

Finance Minister Dr Cassiel Ato Forson has highlighted the Government's efforts to lower the cost of capital for Ghanaian businesses, as reported in a meeting with IFC Managing Director Makhtar Diop. Speaking to reporters, Dr Forson emphasized the importance of these efforts, stating that the cost of capital is indeed coming down. One concrete example he provided was the decrease in Treasury bill rates, which the Government has been actively aiming to reduce.

Dr Forson expressed the Government's ambition to leverage the return of economic stability and the improved credit rating to spur economic growth, particularly within the private sector. He pointed out that while economic stability has returned and the credit rating has improved, the ultimate goal is to elevate Ghana's credit status to investment-grade by 2030. This strategic move aims to secure financing at lower interest rates, thus diminishing the nation's debt servicing costs.

Forson urged IFC to enhance its support for Ghanaian businesses, particularly in sectors that could catalyze economic transformation and job creation. He welcomed Diop's congratulations on Ghana's economic strides, particularly the reduction in inflation, acknowledging that achieving these gains was no small feat. Furthermore, Diop emphasized IFC's commitment to bolstering Ghana's middle class and promoting local investment.

The IFC also encouraged the Government to broaden private-sector involvement in infrastructure financing.