Business News of 2026-09-03
Ghana's economic recovery is strong, gains must be protected - BoG Governor
Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, says Ghana’s economy has made significant gains but warns that the progress must be protected to keep the recovery on track.
He pointed to falling inflation, lower lending rates, stronger foreign reserves, increased lending to businesses and households, and improvements in the banking sector as signs of the economic recovery.
In a post on Facebook reacting to the World Bank’s 10th Ghana Economic Update, sighted by GhanaWeb Business, Dr Asiama said the report confirms the progress Ghana has made in key areas of the economy.
“The gains are significant, but they must be protected and consolidated,” he said.
Inflation fell from 23.2% in February 2025 to 5.4% in December. The World Bank said the decline was mainly due to the Bank of Ghana’s tight monetary policy, the stronger cedi and lower food prices.
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The fall in inflation allowed the BoG to reduce its policy rate from 28% in April 2025 to 14% by March 2026.
Average bank lending rates also dropped from about 27% in June 2025 to 15.6% in June 2026, making borrowing cheaper for businesses and households.
Lending to businesses and individuals has also increased. Real private-sector credit grew by 34.1% in June 2026, compared with a 4.5% decline a year earlier.
Ghana’s foreign reserves have also improved. Gross international reserves reached US$13.8 billion at the end of 2025, enough to cover about 5.7 months of imports.
The World Bank also praised the BoG’s decision to convert part of its gold holdings into foreign-currency investments that can earn interest.
The banking sector has also recorded improvements. Total banking-sector assets reached GH¢502.4 billion by June 2026, while the capital adequacy ratio increased to 20.4%, well above the required minimum of 13%.
The level of bad loans also declined, with the non-performing loan ratio falling from 23.1% to 16.1%.
Dr Asiama said these improvements highlight the need to continue maintaining price stability, strengthening bank supervision and carefully managing Ghana’s foreign reserves.
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“At the Bank of Ghana, our focus remains on safeguarding price and financial stability and ensuring that the improving macroeconomic environment increasingly supports businesses, households, investment and sustainable economic growth,” he said.
He said the Bank of Ghana would continue to focus on keeping inflation under control, maintaining a stable financial system and creating conditions that support businesses, households and investment.
DR/MA
