Ghana faces liquidity paradox as capital fails to reach businesses

Ghana is experiencing an economic paradox where substantial liquidity exists within the financial system, yet capital is not reaching businesses in a manner that supports production, job creation, or market expansion.

While commercial banks seek credible borrowers and institutions such as pension funds and insurance companies continue to mobilize savings, much of this capital remains tied up in deposits, government securities, or Bank of Ghana operations. In September 2026, the central bank reportedly absorbed over GH¢21 billion in a single week through 14-day bills at an annualized rate of approximately 10.5%.

The mismatch is further highlighted by interest rate disparities. Although the Ghana Reference Rate fell to 10.18% in September, the average lending rate reported by the Bank of Ghana for August was 15.94%. The Monetary Policy Committee maintained the policy rate at 14% during its September 2026 meeting.

Challenges in converting savings into productive capital include the need for appropriately structured finance—such as medium-term borrowing for machinery or equity for fast-growing firms—and the difficulty lenders face in verifying borrower viability, collateral, and governance.