The Association of Ghana Industries (AGI) is urging the Bank of Ghana (BoG) to slash the monetary policy rate further, warning that high borrowing costs threaten the rollout of the new 24-hour economy law.
Even after the recent cut to 15.5%, AGI says credit remains prohibitively expensive for businesses aiming to expand operations and run around the clock. Without cheaper financing, firms will struggle to scale production, buy equipment, and handle the demands of nonstop operations.
Greater Accra Regional Chairman Tsonam Akpeloo told Citi Business News the rate is an improvement but still lags behind African peers. “It’s about 15.5% great progress, but one of the world’s highest. We dream of borrowing at 8% like in Ethiopia or 10% in Johannesburg. Right now, Cedi loans cost around 20%,” he said.
Akpeloo emphasized that Ghanaian companies now compete continent-wide, not just locally. “You’re up against firms in Kenya or Egypt with lower rates. Borrowing costs are a continental issue we must benchmark accordingly.”
With inflation cooling and stability returning, AGI argues the BoG has space for bolder cuts to boost private sector growth, enhance AfCFTA competitiveness, and create jobs.
“You’re competing not only with companies within Ghana, but with every company in the African region. The issue of policy rate and borrowing costs is no longer local it’s continental. Our focus is benchmarking our rates against what you see in Kenya or Egypt,” he noted. Ghana travel guide
AGI maintains that with inflation moderating and macroeconomic stability gradually improving, the central bank has room to adopt a more growth-supportive stance.
According to the Association, deeper rate cuts would stimulate private sector expansion, strengthen Ghana’s competitiveness under AfCFTA, and accelerate job creation.
Story by: Mercy Addai Turkson # ahotorfmonline.com