The government has cut Ghana’s borrowing costs by more than half since President John Dramani Mahama took office, Finance Minister Dr. Cassiel Ato Forson says.
The cost of capital, which previously averaged about 30 per cent, has now fallen to between 9 and 13 per cent, according to Dr. Forson.
“Since President Mahama took office, we have deliberately brought down the cost of capital. Today, businesses can borrow at between 9 and 13 per cent,” he said.
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However, the Finance Minister said the government’s longer-term objective was to reduce borrowing costs to single digits.
He said that would allow businesses to obtain more affordable financing, support expansion and create jobs.
Dr. Forson also raised concerns about the amount of credit being provided to private-sector businesses.
“Our banks are not lending enough to the private sector, and that should not be the case,” he said.
The government wants credit to become both cheaper and more readily available to market traders and business owners across the country, he added.
“Affordable financing will help businesses grow, expand economic activity, and create more jobs for our young people,” Dr. Forson said.
