Bank of Ghana Governor, Dr. Johnson Asiama, has set a bold target: reduce lending rates to 10% or less in four years. He believes this move will stimulate private investment and drive economic growth.
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Currently, lending rates average 27.4%. This high cost makes borrowing difficult, especially for small and medium-sized businesses.
Speaking at the AGI Corporate Forum in Accra, Dr. Asiama emphasized the urgency of financial reform.
“My vision is to see lending rates fall below 10 percent before my term ends. It is doable,” he said.
To achieve this, the Bank of Ghana is working closely with commercial banks. The Governor is encouraging them to propose and lead reform efforts.
“I want to see more self-regulation. As industry leaders, you know what works. Don’t wait for me. I’ll just referee,” he added.
Additionally, Dr. Asiama noted that a stable macroeconomic environment is key. Inflation has dropped, and the cedi is showing more stability. These, he said, create the right conditions for lower interest rates.
Meanwhile, Dr. Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), welcomed the plan. However, he urged the BoG to ensure that macroeconomic gains result in real relief for businesses.
“We see signs of recovery, lower inflation, a stable cedi, and renewed confidence. But these must lead to real benefits,” he said.
If the lending rate target is achieved, it could unlock capital, improve business competitiveness, and boost Ghana’s growth outlook.
