Chief Executive of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, says Ghana’s economic progress now depends on a stronger partnership between banks and the private sector.

Speaking on Joy News’ PM Express Business Edition on Thursday, he said the era where banks relied on government borrowing to stay profitable is over, and lenders must now support businesses if the country’s economy is to move forward.

According to him, the fundamentals have shifted. Government is no longer absorbing bank capital through Treasury bills, and lenders must lend to the private sector or risk losing out on meaningful returns.

“The development of an economy, for me, is a partnership. So the banks will play their role. The businesses, if they don’t go for the loan, the money will be there,” he said.

He noted that for years, banks enjoyed easy profits because Treasury bill rates were high, making government the most attractive borrower on the market. But with T-bill rates now at 10 per cent, that option has vanished.

“There’s nothing you can do with it now that government is not borrowing. One of the days when it was 25 per cent, where the banks will take their money, give it to government, go and sleep and make 25 per cent interest and high profit. Now that trend is changing,” he explained.

Mr. Aboagye said the new reality leaves banks with only one viable path — supporting the private sector.

“Government is not borrowing, so you have no option but to give it to the private sector. We’ve seen an increase in the credit to the private sector, and I’m sure that it’s going to be sustained. That is where we’ll be able to move our economy forward,” he stated.

He stressed that lower interest rates are critical to strengthening this partnership. Affordable credit will encourage more businesses to borrow and invest, while banks will also benefit from reduced default risks.

“In fact, if interest rates should come down, businesses are borrowing, the banks themselves will also do very well. They will make a lot of profit because non-performing loans will also go down,” he added.

He said the Chamber will continue to closely monitor the situation as banks adjust to this new phase of private-sector-led growth.

“So we are holding them to their word. And obviously, we are all here. We will be analysing and assessing.”