Ghana has reached a defining moment in its economic recovery. The decision by the Bank of Ghana to cut the policy rate to 18 percent, the lowest since March 2022, signals confidence in the nation’s progress and a clear shift toward growth. This move follows a steady decline in inflation and reflects improving macroeconomic stability.
For the business community, this is welcome news. Lower borrowing costs give companies room to breathe. Firms can now refinance expensive debt, secure working capital on better terms, and revive expansion plans that were delayed due to high interest rates. Sectors that have felt the tightness of credit — agriculture, manufacturing, construction, retail, hospitality, and services — stand to gain immediately.
The impact on households is equally important. More affordable credit boosts purchasing power and supports consumer spending. Stronger demand feeds back into the private sector, boosting production, creating jobs, and energizing the entire economic value chain.
But the real catalyst for progress will be the response of the banking sector. With a significantly reduced cost of capital, banks now have the opportunity and responsibility to pass on the benefits. This is the time to lower lending rates, expand credit access, and roll out financing solutions tailored to the needs of growing businesses. A confident private sector is the backbone of any expanding economy, and banks must play their part by supporting viable enterprises and productive investments.
If implemented swiftly, this policy shift can unlock:
• Easier access to working capital for SMEs.
• New investments in production, technology, and capacity.
• Increased hiring and job creation across sectors.
• A revival of consumer confidence and spending.
• A stronger, more resilient economy.
This policy rate cut is more than a monetary adjustment. It is a call to action for leaders in business, finance, and industry. Ghana is signaling that the environment is shifting from survival to growth. The private sector must seize the opportunity.
As Founding Chief Executive of the CEO Network Ghana, I encourage CEOs, financial institutions, investors, and entrepreneurs to respond with urgency. Reassess your growth plans. Seek financing. Invest in expansion. Innovate. Build.
Ghana’s path to stronger economic performance depends not only on favourable policy, but on our collective will to act. With coordinated effort between the private sector and financial institutions, this milestone can mark the beginning of a new period of confidence, productivity, and shared prosperity.
The moment is here. The conditions are right. Let us move with purpose and shape Ghana’s next chapter of growth.
By Ernest De-Graft Egyir
Founding Chief Executive, CEO Network Ghana
