The Bank of Ghana is intensifying efforts to encourage commercial banks to increase lending to the private sector, but businesses must position themselves strategically if they are to benefit from this renewed opportunity.
Governor of the Bank of Ghana, Dr. Johnson Asiama, has signaled that with inflation easing, interest rates declining, and the cedi stabilising, conditions are now ripe for more private-sector credit. He has urged banks to channel funds into productive sectors to drive growth and create jobs.
However, analysts warn that unless businesses improve their own financial readiness, the Central Bank’s push may not translate into wider access to credit. Many small and medium enterprises (SMEs) are still constrained by poor bookkeeping, lack of audited accounts, and weak governance structures gaps that make them unattractive to lenders.
Private-sector credit has remained sluggish despite policy easing, as banks continue to be cautious in the face of high non-performing loans (NPLs). While the sector’s NPL ratio has dropped to 23.1% in June from 25.7% a year earlier, it remains significantly higher than peers such as Nigeria (4.2%), Kenya (17.4%), and South Africa (1%).
To strengthen discipline, the Bank of Ghana has introduced a directive that bars wilful defaulters from accessing credit for up to five years. Under the rules, commercial banks and regulated lenders must publish the names of such defaulters twice a year in at least two national newspapers and on their websites.
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The message is clear: as the Central Bank creates space for more lending, businesses must also do the work to make themselves bankable. Those with sound financial records, good governance, and strong repayment histories will be first in line to tap into the flow of new funds expected to support growth in the months ahead.
