Ghana banking lending rates plunge to 15.6% as private credit surges 41%

Bank of Ghana governor reports average lending costs halved from 27% to 15.6%, coinciding with a sharp acceleration in private sector borrowing.

By Handelsavisen Newsroom · Automated 2026-07-23 09:09 UTC · 1 min read

Average lending rates across Ghana’s banking sector have fallen to 15.6%, down significantly from 27%, according to the Bank of Ghana governor.

The central bank official highlighted that the reduction in borrowing costs has coincided with a substantial increase in credit demand, driving private sector credit growth to 41.2% in June 2026, compared with just 8.6% in the prior period.

The dramatic compression in lending rates suggests a marked shift in the cost of capital for businesses and consumers in West Africa’s fourth-largest economy.

The surge in credit uptake indicates that lower rates are effectively stimulating economic activity, reversing a period of tighter financial conditions that had previously constrained private sector expansion.

This development aligns with broader structural reforms at the Bank of Ghana, which has moved to dispose of its remaining shareholdings in the Agricultural Development Bank and the National Investment Bank.

These divestitures are part of a strategy to reinforce the central bank’s role strictly as a monetary authority, allowing market forces to play a larger role in credit allocation.