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 investment in expanding productive capacity.
A recent study on the sectoral distribution of bank lending in Ghana reveals a sharp decline in lending to agricultural and manufacturing enterprises over the past two and a half decades.
- From 1999 to 2023, the share of total bank credit to the agricultural sector fell by about 65%.
- During the same period, the share of total bank credit to the manufacturing sector decreased by about 56%.
For instance, in 1999, about 25% of total bank lending went to manufacturing businesses, but by 2023, that figure had fallen to about 11%.
Author's summary: Ghana's banks are not lending enough to key sectors like agriculture and manufacturing.