The Bank of Ghana has entreated commercial banks to lower lending rates at a time macroeconomic performance of the nation, including inflation, is improving.
Elsie Addo Awadzi, the second deputy governor of the Bank of Ghana, claims that the rate of inflation has steadily decreased from the start of the year to 41.2%, signaling indicators of economic recovery.
Addressing at the inauguration of a partnership between Absa Bank and the Mastercard Foundation to offer 10% interest rates on loans to small enterprises, the second deputy governor said “as the economy picks up and there is a signal of improvement in the macro economy, we expect things to get better. Moments ago before I got here, inflation has dropped to 41.2% for April [2023], from the about 50% some months ago”.
“We as a regulator and at the Monetary Policy Committee project that things will improve. Inflation rate will drop further and lending rates will come down. I, therefore, encouraged you all as banks to emulate Absa Bank and bring the lending rates down further”, she added.
“I want to see more lending to the sector at lower rates so that these Ghanaian businesses can be very competitive,” she reiterated.
Furthermore, she said the Small and Micro Enterprises are the backbone of the economy especially with the Africa Continental Free Trade Agreement onboard.
Country Manager for Mastercard Foundation, Rossy Fynn used the occasion to announce plans by the foundation to introduce innovative products to support small businesses especially those on sustainable and green initiatives.
Managing Director for Absa Bank, Abena Osei Opoku assured that the bank will remain the best choice for SME lending.
She also indicated that the plan for the SME loan at 10% is to reach out to more than 5,000 small businesses and make them investor ready.
The Absa SME loan is a low rate special offer at 10% for women owned businesses and SMEs.