Finance Minister Dr Cassiel Ato Forson has disclosed that the cost of capital for businesses in Ghana has declined by more than half since President John Dramani Mahama assumed office, with prevailing borrowing rates now ranging between 9 percent and 13 percent, according to the Minister.
Dr Forson made the disclosure during an engagement with the Food and Beverages Association of Ghana, where he outlined the government’s efforts to improve financing conditions for businesses and expand access to affordable credit.
According to the Finance Minister, the cost of capital, which he said had previously averaged approximately 30 percent, has been substantially reduced under the current administration.
“Since President Mahama took office, we have deliberately brought down the cost of capital. Today, businesses can borrow at between 9 percent and 13 percent,” Dr Forson stated.
He explained, however, that the government considers the current lending environment an intermediate stage rather than the final objective. The administration, he said, intends to push borrowing costs into single digit territory, thereby enabling businesses to secure financing at rates that are more affordable and conducive to expansion.
Dr Forson said cheaper financing would give enterprises greater capacity to increase production, broaden their operations and create additional employment opportunities.
He nevertheless drew attention to another challenge confronting businesses, namely the limited volume of credit currently being extended by commercial banks to the private sector.
“Our banks are not lending enough to the private sector, and that should not be the case,” he said.
The Finance Minister consequently emphasised that lowering the price of credit must be accompanied by stronger access to financing. In his view, businesses require not only reduced interest costs but also sufficient availability of credit to enable them to take advantage of improved economic conditions.
He said the government therefore wants financing to become both less expensive and more readily accessible to entrepreneurs, market traders and business operators throughout the country.
Dr Forson further maintained that increased access to affordable financing could contribute to the expansion of private enterprises, stimulate broader economic activity and support the creation of employment opportunities, particularly for young people.
The Finance Minister’s remarks form part of a wider government agenda focused on translating recent macroeconomic improvements into increased private sector investment, production and employment. In a separate engagement with industry leaders earlier in September, he said government was working to reduce the cost of capital while creating conditions that would allow banks to lend more to productive businesses.
Recent statements from the Finance Minister have also placed increased emphasis on encouraging businesses to invest as the government seeks to consolidate economic stability and move towards what it describes as a broader phase of economic transformation. Dr Forson has indicated that the government’s new economic blueprint is expected to feature prominently in the 2027 Budget.
The latest comments therefore place affordable business financing at the centre of the government’s stated efforts to encourage enterprise expansion, increase productive activity and support job creation, while the Finance Minister maintains that the ultimate target remains a further reduction in borrowing costs to single digit levels.
