Ato Forson urges banks to increase lending to productive sectors

Finance Minister Dr. Cassiel Ato Forson has called on banks to increase lending to Ghana's productive sectors as the government seeks to reduce its reliance on domestic borrowing. In a statement made by the Financial Sector Division Director, Louis Kwame Amo on behalf of the Minister, the banking industry was urged to play a greater role in financing businesses that increase production, boost exports, and create jobs.

While macroeconomic stability remains a priority, the government aims to transform Ghana into a more productive, competitive, and export-oriented economy, with increased private-sector participation.

Amo emphasized during the inauguration of Absa Bank Ghana's new head office on September 25 that stability is merely a platform, and transformation is the ultimate goal. The call to increase lending to productive sectors is part of the government's New Economy program, which aims to build upon recent macroeconomic stabilization while working alongside the private sector and other stakeholders to bolster productive areas of the economy.

With the government reducing its involvement in the domestic financing market, there is now more space for banks to extend credit to private businesses. Amo specifically encouraged financial institutions to prioritize lending to enterprises in manufacturing, agriculture and agro-processing, exports, technology, and other activities that generate employment.

He stressed the importance of stronger collaboration between the banking sector and productive businesses to sustain economic transformation and create more opportunities for private-sector growth.