The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has urged banks to develop innovative and flexible credit products tailored for small and medium-sized enterprises (SMEs) in the agricultural sector. This call comes as many agricultural businesses continue to struggle with financing access, despite a significant improvement in Ghana's overall economic conditions.
Dr. Asiama highlighted that banks often view agricultural SMEs as high-risk, which limits their access to crucial funding. He stressed the need for financial institutions to move beyond traditional lending models and better understand the unique operational realities of these businesses. The Governor emphasized that banks are not just financial intermediaries but essential partners in Ghana's economic growth and transformation.
This initiative aligns with broader efforts to strengthen Ghana's economy, where agriculture plays a vital role in employment and raw material supply. The central bank's push for specialized lending aims to ensure that improved financial conditions translate into tangible support for productive sectors. This strategic focus is critical for fostering sustainable development across the nation.
Dr. Asiama made these remarks during an engagement with Chief Executive Officers and heads of banks, where he discussed recent economic and banking sector developments. He specifically urged banks to design loan products that reflect the seasonal nature of agricultural businesses. This includes aligning loan repayment schedules with the timing and pattern of borrowers' cash flows.
Such an approach, according to the Governor, would make it easier for agricultural SMEs to secure financing under terms that better reflect their operational realities. This would enable these businesses to thrive and contribute more effectively to the national economy. The central bank believes this targeted support is crucial for unlocking the full potential of the agricultural value chain.
The call for redesigned loans comes amid easing financial conditions in Ghana. The Bank of Ghana reported a substantial rebound in credit creation, with private sector credit growing by 41.2% in June 2026. This figure represents a significant increase from the 8.6% recorded in the same period a year earlier. Real private sector credit growth also stood at 34.1%.
Dr. Asiama noted that interest rates in the money market have continued to moderate across various segments. These positive developments are beginning to translate into stronger credit flows to the private sector. The improved financial environment provides an opportune moment for banks to increase their support for key economic sectors.
The banking sector itself has shown significant improvements, including stronger capitalization and asset quality. The industry’s capital adequacy ratio increased to 20.4% in June 2026, up from 10.6% a year earlier. Furthermore, the non-performing loan ratio declined to 16.1% from 23.1% over the same period, indicating a healthier financial landscape.
With agriculture employing a significant proportion of businesses and households, and serving as a key source of raw materials for industry, Dr. Asiama’s call places renewed emphasis on ensuring improved financial conditions translate into greater access to productive credit. This strategic intervention is expected to bolster the resilience and growth of Ghana's agricultural sector.