Audio By Carbonatix
The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has urged banks to develop more innovative and flexible credit products tailored to the needs of small and medium-sized enterprises (SMEs), particularly businesses operating along the agricultural value chain.
He said despite the improvement in Ghana’s economic conditions and a strong rebound in credit creation, many SMEs in the agricultural sector continue to struggle to access financing because banks perceive them as relatively high-risk businesses.
Dr Asiama made the call when he engaged Chief Executive Officers and heads of banks, where he outlined recent developments in the economy and the banking sector.
“However, despite the improved economic environment and the growing demand for credit, many SMEs, particularly those on the agricultural value chain, still struggle to access finance, just because banks continue to perceive these businesses as relatively high risk,” he said.
The Governor argued that banks must move beyond traditional lending approaches and develop a better understanding of the sectors and businesses they finance.
“As banks, you are not merely financial intermediaries, you are important business partners in the growth and transformation of the economy,” Dr Asiama stated.
He specifically urged banks to design loan products that reflect the seasonal nature of agricultural businesses, particularly in determining repayment schedules.
“This should include developing innovative and flexible credit products that recognise the seasonal nature of agricultural activities and align loan repayment schedules with the timing and pattern of borrowers' cash flows,” he said.
According to the Governor, such an approach would make it easier for SMEs to secure financing under conditions that reflect the realities of their operations.
“Such an approach would enable SMEs to access financing on terms that better reflect the realities of their businesses,” he added.
The call comes as financial conditions in Ghana continue to ease, with the Bank of Ghana reporting a significant rebound in credit creation.
Private sector credit grew by 41.2% in June 2026, compared with 8.6% recorded in the same period a year earlier, while real private sector credit growth stood at 34.1%.
Dr Asiama said the improvement in financial conditions provides an opportunity for banks to increase their support for productive sectors of the economy.
He noted that interest rates in the money market have continued to moderate across various market segments, with these developments beginning to translate into stronger credit flows to the private sector.
The Governor also pointed to broader improvements in the banking sector, including stronger capitalisation and asset quality.
The industry’s capital adequacy ratio increased to 20.4% in June 2026, from 10.6% a year earlier, while the non-performing loan ratio declined to 16.1% from 23.1% over the same period.
With agriculture employing a significant proportion of businesses and households and serving as a key source of raw materials for industry, Dr Asiama’s call places renewed emphasis on ensuring that improved financial conditions translate into greater access to productive credit.
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