Finance Minister Dr Cassiel Ato Forson says the cost of borrowing for businesses in Ghana has fallen by more than half, as the government continues efforts to improve access to affordable financing for the private sector.
Speaking during a meeting with the Food and Beverages Association of Ghana, Dr Forson said the cost of capital, which previously averaged around 30%, had declined significantly, with some businesses now able to access bank financing at rates between 9% and 13%.
According to the Finance Minister, reducing interest rates and the cost of capital is part of efforts to create a more favourable business environment, encourage private-sector investment and support economic growth.
Dr Forson said the government’s next objective is to bring business borrowing costs into single digits, allowing companies to secure more affordable loans to expand their operations, increase production and create jobs.
Government Targets Affordable Business Loans
The Finance Minister explained that lower commercial lending rates could help Ghanaian businesses access the financing needed for expansion and investment.
However, he noted that the cost of credit is only one part of the challenge. Access to credit for the private sector also remains a major concern, particularly for businesses that require financing to grow.
Dr Forson expressed concern that banks are not providing sufficient financing to private-sector businesses and stressed the need for greater availability of loans.
The government is therefore seeking to improve both the affordability and availability of business financing in Ghana.
Private Sector Credit Remains Key to Economic Growth
According to Dr Forson, affordable financing can help businesses expand, increase economic activity and create employment opportunities for young people.
Recent Bank of Ghana data also show a significant decline in average commercial-bank lending rates, although the economy-wide average remains above the 9%–13% range cited by the Finance Minister for some borrowers.
The government’s broader economic programme is focused on strengthening economic stability, private-sector investment, business growth and job creation, while creating conditions for banks to lend more effectively to productive businesses.
Dr Forson’s comments highlight the government’s continued push to reduce interest rates in Ghana, expand access to finance and create a more supportive environment for businesses, manufacturers, traders and other private-sector operators.
Source: newsthemegh.com