C-NERGY Global Holdings has expressed concern that Ghana’s cost of borrowing remains too high to support the scale of private-sector growth envisioned under the government’s flagship 24-Hour Economy initiative, despite clear signs of macroeconomic progress in the first half of 2025.
In its analysis of the 2025 Mid-Year Budget Review, the firm noted the progress made in stabilising the economy, from the cedi’s exceptional appreciation to easing inflation and falling treasury bill rates, but cautioned that the modest drop in commercial lending rates has yet to create meaningful relief for businesses.
The average bank lending rate eased from 30.3 percent to 27 percent between December 2024 and June 2025. While the reduction is welcome, C-NERGY described it as insufficient to significantly improve access to affordable credit.
“The 3.3 percentage points drop in the average bank lending rate from 30.3% to 27% is not worth celebrating,” the review stated.
The analysis highlighted that the government has positioned itself as a “facilitator, not a dominator” in advancing the 24-Hour Economy, a policy designed to stimulate production, extend business activity and create new jobs. C-NERGY said this vision depends heavily on the private sector, which will need easier access to finance if it is to drive investment and employment.
“If the government will only facilitate, and not dominate, this ambitious new growth pole, we cannot expect the private sector to drive enterprise growth and create decent, well-paying jobs with this extremely high cost of funds,” the review cautioned.
The report called for greater efforts to lower lending rates further, emphasising that more affordable borrowing would empower entrepreneurs, catalyse expansion, and help turn the 24-Hour Economy from policy vision to reality.
“We can push harder to drop lending rates to catalyze private sector-led growth under the 24-hour Economy initiative,” it added.
Cnergy’s comments come alongside acknowledgment of broader gains detailed in the mid-year budget. The cedi has recorded its strongest six-month performance in decades, inflation has fallen from 23.8 percent at the end of 2024 to 13.7 percent by June 2025, and short-term treasury bill rates have almost halved.
Yet, the review suggests these improvements have not fully translated into affordable credit for the businesses that are expected to lead growth. For many small and medium enterprises, borrowing costs above 25 percent remain a significant barrier to investment, hiring and innovation.
As the government navigates the rest of 2025, the challenge will be ensuring that stabilisation translates into wider economic participation, and that the ambition of a private sector–driven 24-Hour Economy is matched by lending conditions that make such growth possible.
