Bank of Ghana urged to steer credit toward productive sectors to fuel 24‑Hour Economy

Key Takeaways

• Total bank advances surged 38.6% YoY to GH¢124.3 billion in June 2026.
• Manufacturing credit accounts for only 11 % of private‑sector loans despite the 24‑Hour Economy agenda.
• Average lending rates fell to 15.64%, prompting banks to chase higher‑yielding consumer credit.
• Experts propose a regulatory facilitation unit or a specialised value‑chain bank to align financing with productive needs.

Banking activity in Ghana accelerated sharply last year, with private‑sector credit expanding by more than 40 %. The influx of funds arrives at a pivotal moment as the government pursues a 24‑Hour Economy that hinges on manufacturing, agribusiness and export‑oriented industries.

Nevertheless, the distribution of credit remains skewed toward commerce and services, leaving the sectors that generate domestic value chains under‑financed. The emerging mismatch threatens to convert macro‑economic stability into a cycle of consumption without structural transformation.

Credit Expansion and Sectoral Allocation

By June 2026, outstanding private‑sector credit reached GH¢124.3 billion, yet manufacturing loans represented only GH¢11.8 billion, roughly 11 % of the total. Agriculture, forestry and fisheries together attracted just GH¢4.8 billion, or 4.5 %. In contrast, the broader services sector absorbed nearly GH¢39.5 billion.

The disparity is amplified by a sharp decline in the average lending rate, which fell from 27 % in June 2025 to 15.64 % a year later. Lower rates reduce banks’ return on government securities, incentivising a shift toward short‑tenor, higher‑yielding consumer and commercial loans.

Without corrective measures, the credit surge may primarily finance imported consumer goods, inflating demand without expanding domestic production capacity.

Structural Gaps in Financing Productive Value Chains

Manufacturing and agribusiness require financing that matches long production cycles, from raw‑material procurement to export settlement. Short‑term credit structures cannot adequately cover capital‑intensive stages such as equipment acquisition, inventory holding, or off‑take‑backed lending.

Current credit assessment models over‑rely on land and building collateral, overlooking assets like machinery, receivables, purchase orders and export contracts that better reflect productive potential. This collateral bias limits access for firms that lack extensive real‑estate but possess viable value‑chain assets.

Bridging the gap calls for a financial architecture that aligns loan tenors, risk profiling and cash‑flow timing with the realities of value‑chain operations.

Policy Proposals: Facilitation Unit and Specialized Industrial Bank

One avenue is the creation of a Productive‑Sector and Value‑Chain Finance Facilitation Unit within the Bank of Ghana. The unit would coordinate with commercial banks, development finance institutions, insurers and pension funds to develop long‑tenor industrial credit, equipment leasing, warehouse financing and export guarantees.

A parallel option is the establishment of a specialised Value‑Chain Industries Bank. Structured as a mixed‑ownership entity, it could mobilise private capital, development partner funding and limited state participation to provide patient financing across agriculture, processing and manufacturing. Commercial banks could engage through co‑lending and guarantee arrangements while the central bank retains supervisory oversight.

The two mechanisms are complementary: regulatory facilitation can improve system‑wide lending practices, while a dedicated bank supplies capital where commercial banks lack appetite or capacity.

Implications for Ghana’s Economic Reset

If expanded credit reaches farms, factories and exporters, the banking sector can become a catalyst for job creation, export diversification and resilience against external shocks. Conversely, a continued drift toward consumer credit risks reinforcing import dependence and eroding foreign‑exchange buffers.

Aligning financing with productive sectors therefore represents the next critical step in Ghana’s post‑inflation recovery. Policy coherence, risk‑adjusted credit assessment and value‑chain‑focused products are essential to translate macro‑stability into tangible industrial growth.

Looking Ahead

Implementing a facilitation framework and, where needed, a specialised industrial bank will require legislative backing, capacity building and stakeholder consensus. Monitoring mechanisms must track credit flow across sectors to ensure alignment with the 24‑Hour Economy objectives.

Successful reorientation of credit could embed productive investment at the core of Ghana’s financial system, turning the recent credit expansion into a durable engine for structural transformation.