Ghana has secured a financing agreement with the Arab Bank for Economic Development in Africa (BADEA) to unlock up to $500 million in support of the 24-Hour Economy initiative.

The memorandum of understanding (MoU) signed at the Bank of Ghana (BoG) headquarters in Accra yesterday established an initial $60 million funding through Development Bank Ghana (DBG) for onward lending to small and medium-sized enterprises, with additional financial institutions expected to participate in subsequent phases.

“This partnership transcends traditional commodity financing and signals BADEA’s commitment to supporting Ghana’s economic transformation agenda,” BADEA President Abdullah KH Almusaibeeh said during the signing ceremony.

The Second Deputy Governor of the BoG, Matilda Asante-Asiedu, who represented the Governor, Dr Johnson Pandit Asiama, emphasised the critical importance of accessible capital for the country’s economic restructuring efforts. 

Package

Qualifying businesses can access concessional loans at interest rates below 12 per cent, with repayment periods extending five to seven years.

Dr Cassiel Ato Forson (right), Finance Minister, welcoming Abdullah Almusaibeeh to his office 

The package includes an equity component specifically targeting youth and women-led enterprises, supported by credit guarantees and insurance mechanisms developed in collaboration with the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL).

The Presidential Advisor on the 24-Hour Economy, Goosie Tanoh, described the arrangement as part of “Fund24”, the financing pillar underpinning the broader economic initiative.

He said the funds would be channelled through private sector institutions rather than the government accounts, a structure designed to reassure international investors about prudent financial management.

Programme officials project the facility could ultimately mobilise more than $18 billion in SME financing by 2030, while strengthening agro-processing and logistics value chains across Ghana’s economic landscape.

The initiative aims to create a pipeline of investment-ready enterprises capable of competing in regional and global markets.

The BADEA partnership complements an earlier agreement with the African Development Bank and signals growing international confidence in Ghana’s economic reform agenda.

The 24-Hour Economy concept envisions extending productive economic activity beyond traditional business hours to maximise output and employment generation.

The programme targets sectors such as manufacturing, agro-processing, and services that can operate effectively during extended hours.

Borrowing strategy

Meanwhile, the Minister of Finance, Dr Cassiel Ato Forson, has given an assurance that the country’s borrowing strategy would remain disciplined and focused on transformation, as it records significant progress in debt sustainability.

Speaking during a meeting with the President of BADEA at the ministry in Accra yesterday, he said that new borrowing would be directed strictly towards projects with lasting economic and social impact, rather than consumption.

Ghana’s total public debt declined from GH¢763.8 billion (64.9% of Gross Domestic Product – GDP) in July 2024 to GH¢628.8 billion (44.9% of GDP) in July 2025, according to data from the Bank of Ghana.

For his part, the BADEA President commended the Finance Minister’s focus on sustainability and transformation.

Mr Almusaibeeh pledged the bank’s readiness to support large-scale projects of such economic importance.