Borrowing costs cut by more than half – Finance Minister

Finance Minister Dr Cassiel Ato Forson revealed that the government has successfully reduced the cost of borrowing by more than half since President John Dramani Mahama assumed office. According to Dr Forson, the cost of capital, previously averaging around 30%, has now fallen to between 9% and 13%. This significant decrease was disclosed during a meeting with the Food and Beverages Association of Ghana.

Dr Forson emphasized that the government's primary objective is to bring borrowing costs down to single digits, enabling businesses to access more affordable financing, expand operations, and generate employment opportunities. However, he expressed concern over the limited availability of credit to the private sector, stating that Ghanaian banks are not lending enough to businesses.

The Finance Minister reiterated the government's commitment to providing cheaper and more accessible credit for market traders and business owners throughout the country. He believes that affordable financing will stimulate business growth, boost economic activity, and create more jobs for the nation's youth.