Ghana's Banks Are Not Lending Enough to Key Sectors
Bank lending is a crucial source of funding for Ghanaian businesses, covering operational expenses and investments in expanding productive capacity.
A recent study on the sectoral distribution of bank lending in Ghana revealed a sharp decline in lending to agricultural and manufacturing enterprises over the past two and a half decades.
Between 1999 and 2023, the share of total bank credit to the agricultural and manufacturing sectors fell by approximately 65% and 56%, respectively.
- In 1999, about 25% of total bank lending went to manufacturing businesses.
- By 2023, this figure had dropped to around 11%.
The share of total bank credit that went to the agricultural and manufacturing sector fell by about 65% and 56% respectively.
Author's summary: Ghana's banks are not lending enough to key sectors like agriculture and manufacturing.