Credit 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 showed nominal private-sector credit grew by 41.20% year-on-year in June. This accelerated from 40.40% in May and 28.70% in April.
When adjusted for inflation, real private-sector credit increased by 34.10%. This compares with growth of 35.40% in May and 24.50% in April. The expansion indicates that credit growth remained substantial even after accounting for changes in consumer prices. The nominal value of private-sector credit reached GHS 119.60 billion at the end of June 2026. This is up 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. This is up from GHS 32.90 billion a year earlier. These figures point to a significant recovery in financial intermediation. Banks are directing a larger volume of resources towards companies and individuals. This follows a period where high interest rates, inflation, and economic uncertainty constrained lending.
Private-sector credit growth strengthened progressively during the opening months of 2026. Nominal growth increased from 19.50% in January to 18.70% in February. It then accelerated to 23.80% in March, 28.70% in April, 40.40% in May, and 41.20% in June. Real credit growth followed a similar pattern, rising from 15.10% in January to 19.90% in March and 34.10% by June.
The expansion occurred alongside a 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 fell to 10.02% from 23.80%. Lower lending rates have improved the conditions for businesses to finance working capital, inventories, equipment, and expansion. They have also reduced the indicative cost of consumer and household credit. Actual borrowing rates still depend on the risk profile of individual customers.
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.
Narrow money, comprising currency outside banks and demand deposits, increased by 29.10% to GHS 221.50 billion. Demand deposits recorded annual growth of 33.80%. Currency outside banks increased by 20.00%. Savings and time deposits expanded by 25.00% to GHS 117.00 billion. The rise in demand deposits suggests more funds were immediately available for transactions. Growth in savings and time deposits strengthened the banking sector’s pool of funds for lending and investment.
Foreign-currency deposits stood at GHS 79.00 billion in June, representing annual growth of 32.20%. Although this was below the 41.70% growth recorded in May, it indicates foreign-currency holdings remained significantly higher than a year earlier. Reserve money, the monetary base controlled 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, which contributed 20.10 percentage points to the expansion.
Currency outside banks contributed 10.30 percentage points. Non-bank deposits contributed 1.40 percentage points. The stronger reserve position of banks points to greater liquidity within the financial system. This improves their capacity to support lending and settle transactions. Net foreign assets emerged as a major source of monetary expansion, growing by 63.60% year-on-year in June. Net domestic assets increased by 17.80%.
The strong growth in net foreign assets reflects Ghana’s external-sector performance on domestic liquidity. 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. However, net foreign assets declined in absolute terms from GHS 139.10 billion in May to GHS 124.00 billion in June. Net domestic assets, meanwhile, rose from GHS 278.20 billion to GHS 293.60 billion. Claims on the private sector reached GHS 120.70 billion in June and contributed 14.10 percentage points.