BoG Governor Sets Bold Target to Slash Lending Rates Below 10% Within Four Years-Ghana

Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced a bold plan to reduce Ghana’s average lending rates from the current 27.4% to below 10% within four years. Speaking at the Association of Ghana Industries (AGI) Corporate Forum in Accra, he outlined this as a critical step towards boosting private sector investment and stimulating economic growth. The initiative aims to ease credit access, especially for small and medium-sized enterprises (SMEs), which often struggle with high borrowing costs.

To achieve this goal, Dr. Asiama emphasized the need for urgent structural reforms and strong collaboration with commercial banks. He disclosed that the BoG is already engaging with banking institutions to craft sustainable strategies for lowering interest rates. He also encouraged industry leaders to take a proactive role through self-regulation, stressing that banking executives are best positioned to design solutions that work for the sector.

Dr. Asiama highlighted the importance of a stable macroeconomic environment in achieving his vision. He pointed to signs of progress such as improved inflation management and a more stable Ghanaian cedi. These indicators, he said, create the foundation needed for broader financial reforms and increased investor confidence.

The Governor also reiterated the Central Bank’s commitment to supporting businesses, calling them essential to national development. He positioned the BoG not just as a regulator, but as a partner in progress. “When businesses succeed, society succeeds,” he said, appealing for greater collaboration and shared responsibility in the reform process.

Responding to the Governor’s announcement, AGI President Dr. Humphrey Ayim-Darke welcomed the vision but urged caution. While acknowledging positive economic signs like falling inflation and currency stability, he stressed the need for these gains to result in actual, measurable benefits for industries. If successful, the BoG’s target could usher in a more competitive credit market and unlock new growth opportunities for the Ghanaian economy.

Source: Citi newsroom