Economy

Borrowing costs cut by more than half – Finance Minister

Dr Cassiel Ato Forson
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Finance Minister Dr Cassiel Ato Forson says the government has reduced the cost of borrowing by more than half since President John Dramani Mahama took office.

According to him, the cost of capital, which previously averaged about 30%, has fallen to between 9% and 13%.

The Finance Minister disclosed this during a meeting with the Food and Beverages Association of Ghana.

“Since President Mahama took office, we have deliberately brought down the cost of capital. Today, businesses can borrow at between 9% and 13%,” Dr Forson said.

He stressed, however, that the government’s ultimate goal is to bring borrowing costs down to single digits so businesses can access affordable financing, expand and create jobs.

The Finance Minister also expressed concern about the limited availability of credit to the private sector.

“Our banks are not lending enough to the private sector, and that should not be the case,” he said.

Dr Forson said the government wants cheaper and more accessible credit for market traders and business owners across the country.

“Affordable financing will help businesses grow, expand economic activity and create more jobs for our young people,” he added.

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