The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry, Mark Badu Aboagye, says banks have run out of excuses not to lend to the private sector.

He insists that government’s retreat from heavy borrowing leaves them with only one viable path — to support real businesses.

Speaking on Joy News’ PM Express Business Edition on Thursday, Badu Aboagye said the country’s economic recovery hinges on strong collaboration between banks and the private sector, stressing that money sitting idle in the financial system benefits no one.

He argued that credit must begin to flow deliberately and consistently to productive enterprises now that government has stopped absorbing bank liquidity through high-yield Treasury bills.

“The development of an economy, for me, is a partnership. So the banks will play their role,” he said.

According to him, banks no longer have the luxury of making effortless profits by lending to government at high interest rates. That era, he said, is gone.

“Now that government is not borrowing with the T-bill rate now at 10%, gone are the days when it was 25%, where the banks will take their money, give it to government, go and sleep and make 25% interest and high profit,” he noted.

He explained that with government stepping back, banks have just one meaningful channel for their capital: Ghanaian businesses.

“Now that trend is changing. Government is not borrowing, so you have no option but to give it to the private sector,” he said.

Badu Aboagye added that signs of progress are emerging, noting that credit to the private sector has already begun to rise. He believes this shift must be sustained if Ghana hopes to achieve real economic transformation.

“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 stressed.

He further argued that lower interest rates would be a win-win for both banks and businesses. Affordable loans would help companies borrow more confidently and reduce the risk of default.

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

Badu Aboagye concluded with a firm reminder that the Chamber expects banks to stick to their commitments.

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