Renowned Audit Firm, Price Waterhouse Coopers (PwC), has noted that Ghana’s improving inflation outlook should lead to lower borrowing costs for businesses and households if the country’s economic recovery is to translate into stronger private sector investment.
Presently, Ghana’s headline inflation stands at 5.3%, while the Bank of Ghana’s policy rate stands at 14.0%, but businesses continue to face average commercial lending rates of 17.64%, highlighting the gap between improving macroeconomic conditions and the cost of credit.
In its review of the 2026 Mid-Year Budget, PwC said the recent decline in inflation and easing monetary policy had created an opportunity to improve access to credit, but cautioned that the benefits of macroeconomic stability would remain limited if lending rates stayed elevated.
The firm said while Ghana had made significant progress in restoring macroeconomic stability, businesses would ultimately judge the recovery by whether financing becomes more affordable and supports investment, expansion and job creation.
PwC noted that inflation had declined sharply over the past year, giving the Bank of Ghana room to begin easing monetary policy.
It said the improving inflation environment should be reflected in commercial lending rates to enable businesses to expand production and take advantage of the country’s improving economic conditions.
According to the firm, lower borrowing costs are essential to unlocking private sector investment, particularly for small and medium-sized enterprises that continue to face high financing costs.
PwC said high lending rates have long constrained business growth, discouraged investment and limited the ability of firms to create jobs, despite improvements in other macroeconomic indicators.
The firm argued that sustaining the economic recovery would require the financial sector to transmit the benefits of lower inflation more effectively through reduced lending costs.
It also urged policymakers to continue strengthening macroeconomic stability, saying durable reductions in inflation, exchange rate volatility and fiscal risks would help create conditions for a sustained decline in interest rates.
PwC said the current macroeconomic environment presents an opportunity for businesses to plan investment with greater confidence, but warned that financing conditions remain a critical test of whether the recovery is reaching the real economy.
The firm added that lower lending rates, together with continued fiscal discipline and structural reforms, would help stimulate private sector activity, increase productivity and support stronger economic growth.
While acknowledging the progress made in stabilising the economy, PwC said the ultimate success of the government’s economic programme would depend not only on improving headline indicators but also on whether businesses and households experience tangible reductions in the cost of borrowing that translate into higher investment and employment.
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