Ghana's current banking model risks undermining the government's ambitious 24-Hour Economy initiative. Banks are directing a disproportionately small share of credit to key productive sectors, potentially hindering industrial growth and transformation.
Total bank advances surged by 38.6 percent to GHS 124.3 billion in June 2026, up from GHS 89.7 billion a year earlier. Private-sector credit also expanded significantly by 41.2 percent. However, this increased lending is not adequately reaching the manufacturing and agricultural sectors, which are crucial for the 24-Hour Economy's success.
This credit allocation pattern raises concerns about Ghana's broader economic stability. The nation seeks to achieve macroeconomic stability alongside productive transformation. If credit primarily fuels consumption and imports, it could lead to increased foreign exchange demand without boosting local production. This imbalance could derail the economic reset Ghana aims for, despite positive trends in overall lending.
At the end of 2025, manufacturing received only GHS 11.8 billion, representing 11.1 percent of outstanding private-sector credit. Agriculture, forestry, and fisheries fared even worse, securing just GHS 4.8 billion, or 4.5 percent. In contrast, commerce and finance accounted for GHS 17.6 billion, while the broader services sector received approximately GHS 39.5 billion. These figures highlight a significant mismatch in financing priorities.
Falling interest rates further complicate this situation. The average lending rate dropped from 27 percent in June 2025 to 15.64 percent in June 2026. Similarly, the 91-day Treasury bill rate declined from 14.74 percent to 5.27 percent. With government securities offering lower returns, banks are incentivized to seek alternative earning assets. There is a danger that this capital will increasingly migrate into consumer loans and short-term commercial financing, leaving productive sectors underserved.
The Bank of Ghana (BoG) must play a catalytic role in addressing this financing mismatch. Experts suggest the BoG should facilitate a regulatory and prudential environment that supports productive-sector financing. This does not mean the BoG should become a direct lender or dictate commercial bank decisions. Instead, it should enable better structures for assessing and financing productive businesses.
One proposed solution is a dedicated Productive Sector and Value-Chain Finance Facilitation Unit within the BoG. This unit would work with banks, development finance institutions, manufacturers, and agribusinesses. Its focus would include long-tenor industrial credit, agricultural finance, equipment leasing, and export credit. Such a unit would promote value-chain banking, moving beyond traditional collateral-based lending.
Alternatively, Ghana could consider establishing a specialized Value Chain Industries Bank. This institution would not necessarily be state-owned. Private investors, financial institutions, and pension funds could participate. Its mandate would be to provide patient and appropriately structured capital for productive value chains, from raw materials to exports. Commercial banks could collaborate through co-lending and guarantees.
These approaches are not mutually exclusive. A BoG facilitation structure could address systemic regulatory constraints. A specialized bank could provide capital where commercial banking models fall short. The goal is to ensure that credit expansion genuinely supports domestic production, rather than merely increasing demand for imported goods. This strategic shift is vital for the 24-Hour Economy to deliver industrial transformation and sustainable growth.