Ghana's total credit to the economy surged by 34.6% to GHS 128.3 billion by August 2026. This significant increase represents a GHS 32.96 billion rise in gross loans and advances. The Bank of Ghana (BoG) reported this acceleration in its September 2026 Monetary Policy Report.
This sharp acceleration compares to a 10.0% growth recorded in the same period a year earlier. Stronger lending to the private sector was a primary driver of this expansion. A rebound in public sector credit also contributed to the overall increase in loans and advances.
This credit expansion signals growing economic activity and confidence within Ghana's financial system. Increased lending often supports business investment and consumer spending, crucial for economic growth. The shift in credit dynamics reflects the country's ongoing efforts to stabilize its economy and encourage private sector participation. This trend aligns with broader government strategies aimed at fostering a more robust and self-reliant economy.
The September 2026 Monetary Policy Report from the Bank of Ghana provided these detailed figures. It highlighted the private sector's increasing share of total credit, which rose to 96.1% from 95.5%. This indicates a continued focus of bank lending towards private sector activities. Credit to the public sector also saw a notable increase, growing by 16.1% in August 2026. This contrasts sharply with a contraction of 26.9% in the previous year, marking a significant turnaround.
The sectoral allocation of bank credit at the end of August 2026 remained concentrated in a few key areas. The services sector continued to receive the largest proportion of industry credit, accounting for 37.7% of total lending. This share was higher than its allocation in the corresponding period of 2025. The commerce and finance sector followed, absorbing 22.4% of the total credit. The construction sector recorded a significant increase, taking 11.3% of all credit extended.
Collectively, these three sectors absorbed 71.3% of total industry lending. This figure is slightly below the 73.5% recorded a year earlier. This modest decrease suggests a slight diversification in the overall sectoral distribution of credit. However, the concentration in services, commerce, and construction remains substantial. This indicates these sectors are still perceived as key growth areas by financial institutions. The increased lending could lead to job creation and infrastructure development in these vital sectors.
The sustained growth in private sector credit is a positive indicator for Ghana's economic resilience. It suggests businesses are accessing capital for expansion and operations. The rebound in public sector credit also provides necessary funding for government projects and initiatives. This dual growth in lending supports both private enterprise and public infrastructure. Policymakers will closely monitor these trends to ensure sustainable economic development. The Bank of Ghana's future monetary policy decisions will likely consider these credit dynamics. Continued credit availability is essential for maintaining economic momentum and achieving broader development goals.