BoG Governor targets single-digit lending rate in four years

Governor of the Bank of Ghana, Dr. Johnson Asiama, has set a goal. He aims to lower lending rates to 10% or less in four years. This move is intended to boost private sector investment and economic growth.

Currently, lending rates in Ghana average about 27.4%. This high rate makes it hard for businesses, especially small and medium-sized enterprises, to access affordable credit. At the AGI Corporate Forum in Accra, Dr. Asiama emphasized the need for structural reforms.

“My vision is to see lending rates fall below 10 percent,” he stated. “It is doable; why do we think it is not?” The Governor mentioned that the Bank of Ghana is working with commercial banks on reform measures. These measures aim to sustainably reduce lending rates.

Dr. Asiama called for more self-regulation within the industry. He urged bank leaders to collaborate and propose solutions without waiting for direction from him. “I will simply play the role of referee,” he said.

The Governor also highlighted the Central Bank’s commitment to a supportive macroeconomic environment. Improved inflation trends and a stable cedi are key components of this vision. “When businesses succeed, society succeeds,” he noted.

Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), welcomed this pledge. However, he urged the BoG to ensure recent gains translate into real benefits for industries.

“We are meeting at a time when our economy shows resilience,” Dr. Ayim-Darke said. He pointed out declining inflation and a stabilized exchange rate as positive signs but stressed that these must lead to tangible benefits for businesses.

If achieved, the Central Bank's target could improve Ghana’s credit environment significantly. It may unlock new capital flows and enhance business competitiveness while strengthening economic growth.