Lending to Ghana’s private sector surged in August 2025, reflecting renewed activity in businesses and households, central bank data showed.
Real private sector credit, adjusted for inflation, rose to 356.0 million in August, up from 327.6 million in July, marking an 8.7% increase. In nominal terms, bank loans to the private sector climbed from GH¢84.9 billion to GH¢91.0 billion over the same period.
The rise signals a sharp revival in lending after relatively flat growth in June and July.
The increase contributed to the broader expansion of domestic credit. Net Domestic Assets (NDA), which measure the banking system’s total claims on the government, private sector, and other items, rose to GH¢263.4 billion in August, with government borrowing continuing to lead overall growth.
Claims on the government grew from GH¢108.6 billion in May to GH¢122.8 billion in August, while private sector claims, including the August surge, climbed from GH¢83.4 billion to GH¢92.0 billion.
Other components, such as claims on the public sector and operational balances, remained stable or fell slightly, but the combined growth in government and private sector claims supported liquidity in the banking system.
The August increase in private sector credit suggests that banks are meeting renewed demand for financing from businesses and households, possibly to fund investment, trade, or seasonal business activities.
The surge also strengthens the availability of funds in the economy, contributing to economic activity while complementing government borrowing.
