Total credit extended by banks to the private sector and public institutions declined significantly to GH¢4.68 billion in June 2025, down from GH¢11.35 billion in the same period of 2024.
This decline was primarily driven by reduced lending to the public sector, according to the Bank of Ghana’s July 2025 Monetary Policy Report.
Credit to the private sector also fell, dropping to GH¢6.69 billion in June 2025 from GH¢11.69 billion recorded a year earlier. The report attributes this reduction to a strategic shift by banks towards investing in Government and Bank of Ghana securities, which offered more sustainable returns during the review period.
Despite the decline in credit flow, the private sector still accounted for a larger portion of total outstanding credit—95.05% in June 2025, compared to 92.40% in June 2024.
The top five sectors receiving the bulk of credit were:
- Services – 76.53%
- Commerce and Finance – 17.65%
- Electricity, Gas, and Water – 6.52%
- Manufacturing – 4.55%
- Agriculture, Forestry, and Fisheries – 4.12%
Outstanding credit to the private sector stood at GH¢84.75 billion in June 2025, up from GH¢78.06 billion in June 2024. However, in real terms, private sector credit contracted by 4.48%, slightly higher than the 4.18% contraction recorded in the previous year.
The report noted that real private sector credit growth remained below trend, signaling subdued lending activity during the period under review.
