Credit to Businesses and Households Surges 41%, Reports BoG Governor

Accra: Credit extended by banks to businesses and households grew by more than 41% in June 2026, up sharply from about 9% recorded a year earlier, the Bank of Ghana (BoG) has disclosed. The significant increase in private-sector lending is being attributed to improved economic confidence and declining lending rates, which have made it easier for businesses and households to access financing. According to Ghana Web, the strong growth in credit is an indication that the banking sector is increasingly supporting economic activity as Ghana's macroeconomic conditions improve. Dr Johnson Pandit Asiama, Governor of the Bank of Ghana, highlighted during a stakeholder engagement with the business community in Sunyani that banks are lending more to the private sector, with credit to businesses and households experiencing a substantial rise. The increased availability of credit is expected to provide businesses with the necessary resources to expand operations, create jobs, and contribute to economic growth. Dr Asiama emphasized that lending rates have fallen, simplifying the process for businesses to secure financing for investment and expansion purposes. The Governor noted that this surge in lending is occurring alongside continued economic expansion, with Ghana's economy growing by 6.4% in the first quarter of 2026, compared with 6.2% during the same period in 2025. This growth has been largely driven by the services and industrial sectors, with noticeable increases in trade, industrial production, and tourism activities. Dr Asiama described the banking sector in Ghana as strong and stable, with banks remaining well-capitalized, deposits continuing to grow, and the quality of bank loans improving. The Monetary Policy Committee recently maintained the Monetary Policy Rate at 14%, a decision aimed at balancing inflation control with support for businesses, investment, and economic growth. In terms of the external sector, Ghana's foreign exchange position remains resilient. The country recorded a higher trade surplus in the first half of 2026, supported by robust exports of gold and cocoa, with foreign exchange reserves standing at approximately US$12.9 billion, equivalent to five months of import cover. This reserve level provides a strong buffer against external shocks and aids the Bank of Ghana in maintaining stability in the foreign exchange market. Despite the cedi facing pressure earlier in the year due to global developments, particularly the conflict in the Middle East, the currency has since recovered. Dr Asiama reassured stakeholders of the central bank's commitment to maintaining an orderly and well-functioning foreign exchange market. However, he cautioned against complacency amid global economic uncertainty and emphasized the BoG's focus on protecting the value of the cedi, keeping inflation low, preserving financial stability, and supporting sustainable economic growth.