The Ghana National Chamber of Commerce and Industry (GNCCI) and the Ghana Association of Banks (GAB) have agreed to strengthen collaboration to improve access to credit for businesses, following the recent reduction in the policy rate by the Bank of Ghana.
The high-level engagement in Accra examined policy rate trends, barriers to credit access and structural challenges within Ghana’s lending environment.
Mr Stephane Miezan, President of GNCCI, welcomed the decline in the reference rate, describing it as a positive response to sustained advocacy by the Chamber.
However, he cautioned that lower interest rates alone would not automatically resolve financing constraints facing the private sector.
“If money becomes cheaper and businesses cannot access it, then it is equally expensive,” he said, stressing that meaningful solutions required structured engagement with the umbrella body of banks rather than isolated discussions with individual institutions.
During the meeting, members of the Chamber drawn from industry, trade and commerce shared firsthand experiences with banking executives, outlining the practical hurdles businesses face in securing loans.
Mr Miezan acknowledged that banks also operate within regulatory and risk management constraints.
He noted that Ghana’s non-performing loan (NPL) ratio stands at approximately 18 per cent, a level he described as significant and a major concern for lenders.
He said GNCCI would intensify education among its members to promote responsible borrowing, adherence to loan conditions and improved financial discipline to help reduce default rates.
Key concerns raised by businesses included high collateral requirements, lengthy credit approval processes sometimes stretching between 15 and 18 months, limited experience among some credit officers, delays in risk assessments, frequent changes in documentation requirements and persistently high lending rates.
Mr John Awuah, Chief Executive Officer of GAB, described the engagement as constructive and emphasised the importance of improved communication between banks and the business community.
He clarified that certain lending requirements, such as collateral coverage of at least 120 percent in some cases, were driven by regulatory obligations rather than arbitrary bank policies.
“Banks lend depositors’ funds and must ensure prudent risk management to safeguard those resources,” he said.
Mr Awuah also expressed concern about Ghana’s high NPL ratio compared to other countries in the sub-region, attributing the situation to weak credit culture and widespread defaults among both households and businesses.
He called for closer collaboration among regulators, the judiciary and other state institutions to strengthen the credit ecosystem and improve debt recovery processes.
The GAB, he said, would enhance training for bank staff, improve information sharing within the industry and explore alternative funding avenues, including concessional financing for priority sectors such as renewable energy.
Both organisations agreed that while the policy rate cut was a welcome development, sustainable improvements in credit accessibility would depend on ongoing dialogue, stronger credit discipline and coordinated institutional reforms to make financing more affordable and accessible for Ghana’s private sector.
