Private Sector Credit Growth Hits 41.2%
Private sector credit in Ghana recorded a strong rebound in June 2026, growing by 41.2 per cent compared to 8.6 per cent during the same period last year, as easing financial conditions continue to support increased lending to businesses.
Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, disclosed the figures during an engagement with Chief Executive Officers and heads of banks, describing the surge in credit growth as a significant development amid improving macroeconomic conditions. According to him, real private sector credit growth stood at 34.1 per cent, reflecting a notable expansion in financing to the productive sectors of the economy.
“Financial conditions have eased significantly. In the money market, interest rates have continued to moderate across various market segments. These developments are beginning to translate into stronger credit flows to the private sector,” Dr Asiama said.
He noted that the decline in inflation and relative stability in the financial sector had created a favourable environment for banks to increase lending and support economic activity.
The Governor urged banks to take advantage of the improving economic conditions by expanding access to finance, particularly for businesses that require capital to grow and create jobs.
Despite the positive credit growth, Dr Asiama observed that many small and medium-sized enterprises (SMEs), especially those operating within the agricultural value chain, continue to face challenges in accessing financing due to the perception that such businesses are high-risk ventures.
He called on banks to develop a deeper understanding of the sectors they serve and design innovative financial products that respond to the realities of borrowers. According to him, credit facilities should be structured to reflect the seasonal nature of agriculture and align repayment schedules with the timing of cash flows.
“This should include developing innovative and flexible credit products that recognise the seasonal nature of agricultural activities and align loan repayment schedules with the timing and pattern of borrowers’ cash flows,” he stated.
Dr Asiama stressed that banks must view themselves not merely as financial intermediaries but as strategic partners in Ghana’s economic transformation.
The strong credit growth comes against a backdrop of improving economic indicators. Ghana’s real Gross Domestic Product (GDP) expanded by 6.4 per cent in the first quarter of 2026, while headline inflation declined to 4.6 per cent in July from 5.3 per cent in June.
The banking sector has also shown signs of improved resilience. Total industry assets increased by 30.7 per cent in June 2026, while the capital adequacy ratio rose to 20.4 per cent from 10.6 per cent a year earlier. The non-performing loan ratio also declined to 16.1 per cent from 23.1 per cent over the same period.
Dr Asiama said these developments provide a stronger foundation for banks to support businesses, households and sustainable economic growth.
