Ghana's borrowing costs halved under Mahama-Finance Minister
Ghana's borrowing costs have been reduced by more than half since President John Dramani Mahama took office.
In Brief
- •Ghana's borrowing costs have been reduced by more than half since President John Dramani Mahama took office.
- •The cost of capital has declined from an average of 30% to between 9% and 13%.
- •Finance Minister Dr Cassiel Ato Forson aims to further reduce borrowing costs to single digits to boost business financing.
- •The government is addressing concerns about limited credit flow to the private sector.
- •Affordable financing is expected to stimulate economic growth and create more jobs.
Why It Matters
The reduction in borrowing costs is a significant economic development for Ghana. It makes business financing more accessible, which can stimulate economic growth and create more employment opportunities. This move is expected to benefit both the private sector and the overall economy by enabling businesses to expand and invest more confidently.
Key Details
- Previous borrowing cost
- 30%
- Current borrowing cost range
- 9% to 13%
- Government's target borrowing cost
- Single digits
Context & Background
Ghana's economic policies under President John Dramani Mahama have focused on improving the business environment and enhancing financial accessibility. This includes measures to reduce the cost of borrowing to support economic growth and job creation.
Original Reporting & Sources
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