
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.
Latest Stories
-
Italian officials handed jail terms for Genoa bridge disaster that killed 43
2 minutes -
MobileMoney Fintech launches Ride with MoMo to digitise fare payments for Pragya riders
9 minutes -
Community banking sector grows to 147 institutions, serving over 8m customers – BoG
17 minutes -
T-bills remain dominant component of banks’ investments, account for 64% of investments
26 minutes -
Delays in chieftaincy cases undermine public confidence — Otumfuo to judiciary
26 minutes -
More than 800 Canadian wildfires burning as air quality alerts extend to US
34 minutes -
Teenager accused of carrying out sabotage actions in Poland for Russia
34 minutes -
National House of Chiefs mourns passing of Ya-Naa Abukari II
35 minutes -
Investigation into parking tickets for drivers queuing at petrol stations
36 minutes -
Otumfuo recounts how political interference sidelined chieftaincy after independence
38 minutes -
Gov’t targets 70% local fuel supply through refinery expansion
40 minutes -
Judiciary must preserve, reform and renew — Chief Justice
51 minutes -
Supreme Court at 150: Justice belongs to the people, not judges — Chief Justice
56 minutes -
Government to make fresh budgetary allocation to continue BoG recapitalisation in 2027
1 hour -
NPP-USA set to elect new leadership at 2026 branch delegates conference
1 hour