Private sector benefiting from low lending rates – BoG Governor

Ghana's banking sector is experiencing a boom due to significantly reduced lending rates, according to the Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama. In a recent speech, Dr. Asiama highlighted that average lending rates have plummeted from 30.25% in December 2024 to a more manageable 15.7% in September 2026. This reduction has spurred a surge in private sector credit growth, which now stands at an impressive 26.4%.

According to Dr. Asiama, these improvements in credit growth reflect broader macroeconomic stability and favorable financing conditions for businesses. He pointed out that real private sector credit growth has surged from less than 1% approximately two years ago to the current robust rate of 26.4% as of September 2026.

Other key highlights from the Governor's remarks include inflation remaining in single digits for 13 consecutive months, a stable exchange rate despite external challenges, and an enhanced resilience of the banking sector over the past couple of years. These favorable conditions could potentially lower borrowing costs for businesses looking to expand or invest, although Dr. Asiama emphasized that access to affordable credit remains crucial, especially for smaller enterprises.

The central bank is actively working on initiatives to enhance financial inclusion, aiming to make formal financial services more accessible, affordable, and convenient for underserved groups such as young people, women, micro, small, and medium-sized enterprises, and disadvantaged communities. Dr. Asiama noted that Ghana's massive youth population presents both opportunities and challenges in terms of entrepreneurship.

To fully harness this potential, the nation needs to invest in equipping its youth with relevant skills, foster enterprise development, and create an enabling environment for investment.

Furthermore, the Bank of Ghana is developing a directive to regulate artificial intelligence in the financial sector. Dr. Asiama stressed the need to encourage innovation while simultaneously addressing the emerging risks associated with this emerging technology. He commended the Ghana Statistical Service for compiling essential economic and financial indicators into the Ghana in Numbers 2025 publication, emphasizing that reliable statistics are crucial for informed monetary policy decisions, financial regulation, and investment.