Audio By Carbonatix
Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), says improving access to credit for businesses and individuals remains a major priority as the country seeks to consolidate economic stability and accelerate growth.
Addressing participants at the Ghana-UK Investment Summit in London, he acknowledged that private sector credit as a share of Gross Domestic Product remained below levels recorded in many peer economies.
He attributed the situation partly to Ghana's recent history of high interest rates and economic uncertainty.
According to him, banks were previously lending at rates of between 35 and 40 per cent, creating significant repayment challenges for borrowers.
Such conditions, he said, made financial institutions cautious about extending credit and encouraged investment in government securities instead.
However, Dr. Asiama noted that the return of macroeconomic stability had begun to reverse the trend.
Private sector credit, he said, was gradually recovering as interest rates declined and confidence improved.
The Governor disclosed that discussions with commercial banks revealed a shortage of bankable projects rather than a lack of available funds.
He explained that many entrepreneurs possessed viable ideas but lacked the technical support needed to transform them into investment-ready business proposals.
To address the challenge, the Bank of Ghana and stakeholders were exploring partnerships to help entrepreneurs develop business plans capable of attracting financing.
Dr. Asiama mentioned ongoing discussions involving the Ghana Venture Capital Fund and other institutions to provide technical assistance to startups and small businesses.
He also cited initiatives by the International Finance Corporation aimed at helping businesses convert ideas into bankable projects.
The Governor said strengthening project preparation would unlock more lending opportunities and support enterprise growth.
Beyond business financing, he indicated that the Bank of Ghana was promoting digital credit solutions to expand access to finance.
The initiative would allow individuals and small-scale entrepreneurs to access credit directly through digital platforms and mobile phones.
He said a trader seeking capital to start or expand a business should be able to raise funds digitally without cumbersome procedures.
According to Dr. Asiama, work on the necessary technological infrastructure was progressing steadily.
He expressed confidence that digital finance would help bridge financing gaps and support entrepreneurship.
The Governor said sustaining low interest rates and exchange rate stability would remain essential for expanding credit to the productive sectors of the economy.
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