The Association of Ghana Industries (AGI) has called on the Bank of Ghana (BoG) to cut the monetary policy rate further, warning that current borrowing costs could undermine the rollout of the newly passed 24-hour economy authority law.
Despite the recent reduction in the policy rate to 15.5%, AGI argued that credit remains too expensive for businesses seeking to expand operations and operate around the clock under the new economic framework.
The association insists that without significantly cheaper financing, many firms will struggle to scale production, invest in equipment, and meet the increased operational demands of a 24-hour system.
Speaking to Citi Business News, the Greater Accra Regional Chairman of AGI, Tsonam Akpeloo, described the current rate as an improvement but still uncompetitive by continental standards.
“Currently, the policy rate is about 15.5%. That is great, but it’s still one of the highest in the world. We are really looking forward to seeing a day when we can borrow at 8%, as it happens in Ethiopia, or 10% as you get on the streets of Johannesburg. Yes, it is relatively better, but overall, you can only access facilities at about 20% in Ghana today, in Cedi terms,” he said.
Mr. Akpeloo stressed that Ghanaian firms are no longer competing solely within the domestic market, but against businesses operating in lower interest rate environments across Africa.
“You’re competing not only with companies within Ghana, but with every company in the African region. The issue of policy rate and borrowing costs is no longer local — it’s continental. Our focus is benchmarking our rates against what you see in Kenya or Egypt,” he noted.
AGI maintains that with inflation moderating and macroeconomic stability gradually improving, the central bank has room to adopt a more growth-supportive stance.
According to the Association, deeper rate cuts would stimulate private sector expansion, strengthen Ghana’s competitiveness under AfCFTA, and accelerate job creation.
