Ghanaian banks significantly increased lending to the private sector by GHS 24.72 billion in the first four months of 2026. This jump represents a 28.70% growth, pushing outstanding private sector credit to GHS 110.89 billion from GHS 86.16 billion a year earlier.
This substantial expansion indicates banks are increasingly focusing on financing businesses rather than the government. Fiscal consolidation efforts have reduced the government's need for domestic borrowing, freeing up bank resources. This change allows banks to lend more to companies and households, supporting economic activity in the real economy affected by Ghana's recent fiscal challenges.
This pivot aligns with Ghana's broader economic strategy of fostering a private-sector-led recovery. For years, Ghana has worked to restore fiscal discipline, control inflation, and stabilize its currency. The current shift in bank lending suggests these efforts are beginning to yield tangible results in the credit market. Strong real private sector credit growth of 24.50% in April 2026 signals a positive turn from weaker credit conditions in 2025.
Data from the Bank of Ghana's May 2026 Monetary Policy Report confirms this trend. Total credit flows reached GHS 23.71 billion by April 2026, a significant rise from GHS 13.60 billion in the same period last year. The report also highlighted that the public sector's share of bank credit contracted by GHS 1.02 billion (18.90%). This contrasts sharply with the expansion seen in private sector lending.
The shift means more bank funds are now directed toward productive enterprises rather than government bonds. This change is crucial for Ghana's economic recovery, as it can stimulate investment and job creation. Policymakers and businesses will closely monitor whether this trend continues. It is vital for sustaining economic growth and attracting further private investment into key sectors.
The Bank of Ghana also noted the banking sector's overall strengthening, with total assets growing by 26.60% year-on-year to GHS 493.90 billion in April 2026. This growth was driven by increased deposits, domestic borrowings, and shareholders' funds. The improvement in financial intermediation shows banks are resuming their fundamental role of lending to foster development.
An analysis of credit allocation reveals sectoral shifts. Services remained the largest recipient of private credit, capturing 34.70% of annual flows. However, its share slightly decreased from 35.60% a year earlier. The commerce and finance sector also saw its share fall to 15.50% from 16.90%. This moderation suggests a diversification of credit towards other sectors of the economy.
Notably, the mining and quarrying sector experienced a significant increase in credit. Its share more than doubled to 6.30% from 2.90% a year prior. This rise reflects renewed commercial interest in Ghana's extractive industries. Stronger commodity markets and increased investment activity support this growing credit allocation. This could boost export revenues and foreign exchange earnings for the country.