The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, has said that confidence in Ghana’s economy is rising, driven largely by a significant decline in lending rates.
His remarks suggest that improving macroeconomic conditions may be creating a more supportive environment for private sector growth, with lower financing costs expected to stimulate investment and enhance business competitiveness.
Speaking at the Channel One TV Quarterly Economic Outlook on Monday, April 27, Mr Twum-Akwaboah said recent economic indicators point to growing optimism among businesses.
“The figures tell us that the confidence level has gone up. The implication is that businesses are feeling more comfortable to invest,” he stated.
He identified the cost of borrowing as a key factor influencing business sentiment, noting that improved access to credit is easing operational pressures for firms.
“One area that is key is the lending rate. Most businesses rely on borrowing, so if the rate is at a level where I can access capital to run my business, it makes life more comfortable,” he explained.
According to him, lending rates have dropped significantly from about 30% cent in 2024 to approximately 17 per cent currently, a reduction he described as substantial.
“This is quite significant. If I can access capital at a much lower cost, it reduces my cost of doing business, which can translate into lower prices and make me more competitive in the market,” he added.
