Credit extended to Ghana’s private sector expanded sharply in the first half of 2026. Stronger liquidity within the financial system and declining interest rates encouraged banks to increase lending to businesses and households. The Bank of Ghana’s July 2026 Summary of Economic and Financial Data confirmed this significant growth.
Nominal private-sector credit grew by 41.20% year-on-year in June 2026. This accelerated from 40.40% in May and 28.70% in April. When adjusted for inflation, real private-sector credit increased by 34.10%, compared with 35.40% in May and 24.50% in April. This expansion shows that credit growth remained substantial even after accounting for changes in consumer prices.
This surge in lending reflects a broader recovery in Ghana’s financial intermediation. Banks are now directing more resources towards companies and individuals. This follows a period where high interest rates, inflation, and economic uncertainty limited lending activities. The consistent growth in credit during the opening months of 2026 underscores this positive trend.
The nominal value of private-sector credit reached GHS 119.60 billion at the end of June 2026. This is a substantial increase from GHS 84.80 billion in the corresponding period of 2025. Real private-sector credit, measured using the Ghana Statistical Service’s consumer price index, increased to GHS 44.20 billion from GHS 32.90 billion a year earlier. These figures highlight the significant volume of new credit entering the economy.
A key factor in this acceleration was the considerable reduction in borrowing costs. Ghana’s average lending rate declined to 15.64% in June 2026 from 27.00% a year earlier. The Ghana Reference Rate also fell to 10.02% from 23.80%. Lower lending rates have improved conditions for businesses to finance working capital, inventories, equipment, and expansion projects. They have also reduced the indicative cost of consumer and household credit, although actual rates depend on individual customer risk profiles.
The acceleration in credit was supported by rapid growth in monetary aggregates. Total liquidity, measured as broad money plus foreign-currency deposits, increased by 28.50% year-on-year to GHS 417.60 billion in June. This compared with annual growth of 28.00% in May and 22.20% in April. Broad money, excluding foreign-currency deposits, expanded by 27.70% to GHS 338.60 billion. This indicates a robust increase in the money supply available for economic activity.
Reserve money, which is the monetary base controlled most directly by the central bank, increased by 31.70% year-on-year to GHS 148.50 billion. This growth was largely driven by an increase in banks’ reserves, contributing 20.10 percentage points to the expansion. The stronger reserve position of banks points to greater liquidity within the financial system. This improves their capacity to support lending and settle transactions, further bolstering the credit environment.
Net foreign assets emerged as a major source of monetary expansion, growing by 63.60% year-on-year in June. This reflects Ghana’s strong external-sector performance. The country recorded substantial export receipts and a large trade surplus during the first half of 2026. This increased the foreign assets held within the monetary system. While net foreign assets declined slightly in absolute terms from GHS 139.10 billion in May to GHS 124.00 billion in June, their overall growth significantly contributed to liquidity.
This sustained credit growth suggests continued economic momentum for Ghana. Businesses will likely leverage lower borrowing costs to invest and expand, potentially leading to job creation and increased productivity. Policymakers will monitor inflation closely, given the expanded liquidity, to ensure price stability is maintained. The banking sector’s health and its ability to manage increased lending volumes will also be a key area of focus for regulators and investors.