By Issah Olegor
Businesses across Ghana are mounting pressure on commercial banks to significantly reduce their lending rates following the sharp decline in the Ghana Reference Rate, arguing that the benefits of improving macroeconomic conditions must be felt by the private sector.
The call comes after the benchmark rate dropped from 14.58 percent in February 2026 to 10.02 percent in June 2026, a development many industry players believe should lead to cheaper access to credit for businesses.
Leading the appeal is the Importers and Exporters Association of Ghana, which says the continued high cost of borrowing remains one of the biggest obstacles to business growth, job creation, and investment.
According to the Association, many commercial banks are still charging lending rates between 18 and 24 percent despite the significant reduction in the reference rate and improvements in other key economic indicators, including inflation.
Speaking to Citi Business News, the Executive Secretary of the Association, Samson Asaki Awingobit, expressed concern that businesses are yet to experience the full benefits of Ghana’s improving economic environment.
He argued that since the Ghana Reference Rate serves as one of the primary benchmarks used by banks to price loans, lending rates should reflect the decline in the benchmark.
According to him, lending rates should ideally fall to between 14 and 15 percent from the current average levels of about 19 percent.
He noted that such a reduction would provide much-needed relief to small and medium-sized enterprises (SMEs), manufacturers, importers, exporters, and other businesses that depend heavily on bank financing to sustain operations and expand their activities.
Asaki further encouraged businesses seeking loans to actively negotiate better borrowing terms with financial institutions.
He maintained that banks can no longer justify maintaining excessively high lending rates when inflation has fallen sharply and the reference rate has declined substantially over recent months.
“The private sector should be the ultimate beneficiary of the progress made in the economy,” he stressed, adding that easier access to affordable financing would help stimulate production, create jobs, and strengthen economic growth.
His comments come against the backdrop of Ghana’s ongoing economic recovery efforts, which have seen inflation decline dramatically from the double-digit levels recorded in previous years.
Although inflation rose slightly from 3.4 percent in April to 3.7 percent in May 2026, Asaki described the increase as modest and manageable.
He explained that the current inflation rate remains favorable for business activity and investment, particularly when compared to the significantly higher inflation levels that previously affected business operations and consumer purchasing power.
While acknowledging the slight uptick in inflation, the Association’s Executive Secretary called for greater transparency regarding the factors behind the increase.
However, he maintained that the overall macroeconomic environment remains stable enough to support lower lending rates.
