Ghana’s Economy Shows Strong Gains, but Borrowing Costs Remain High — Kyei-Mensah-Bonsu Warns

Former Majority Leader Osei Kyei-Mensah-Bonsu has praised the Ghanaian government for recent improvements in the country’s economic performance, describing the Cedi’s strengthening against major currencies and a drop in inflation to 9.4% as a “stupendous achievement.” Speaking on Channel One TV’s The Point of View program with Bernard Avle on Monday, October 6, 2025, he acknowledged the government’s efforts in steering the economy toward stability.

Despite the positive macroeconomic indicators, Kyei-Mensah-Bonsu cautioned that the high cost of borrowing remains a pressing concern. He noted that lower inflation and a stronger Cedi should ideally translate into reduced interest rates for businesses and consumers. “If the interest rate is still hanging up there, it means some of the fundamentals are not talking to each other, and we need to interrogate each other,” he said, stressing the need for further alignment of fiscal and monetary policies.

The former lawmaker attributed part of Ghana’s current economic resilience to the $9 billion in international reserves left by the previous administration. These reserves, he explained, have helped to stabilize the country’s financial position, giving the current government a stronger footing to implement economic policies.

Kyei-Mensah-Bonsu further emphasized that while the government’s efforts are commendable, sustaining the gains will require ongoing vigilance and effective coordination between monetary and fiscal authorities. He highlighted that ordinary Ghanaians must also feel the impact of these macroeconomic improvements through easier access to affordable credit and improved economic opportunities.

Recent data from the Bank of Ghana’s Monetary Policy Report shows some progress in lowering borrowing costs. Average lending rates have eased from 26.6% to 24.2%, while yields on money market instruments, such as the 91-day Treasury bill, dropped from 13.4% in July to 10.3% in August 2025. While these numbers indicate a positive trend, Kyei-Mensah-Bonsu reiterated that more work is needed to ensure the benefits reach all Ghanaians.

source: citi newsroom