He said the volume of credit extended to businesses as a proportion of Gross Domestic Product lagged significantly behind comparable economies.  

Dr Asiama, speaking at the Ghana-UK Investment Summit in London,  acknowledged that private sector credit in Ghana remained low relative to peer countries.  

The situation reflected the legacy of Ghana’s previous high-interest-rate environment, where lending rates often ranged between 35 and 40 per cent.  

Such rates, he explained, increased the likelihood of defaults and made banks more cautious in extending credit to businesses.  

At the same time, government securities provided attractive investment opportunities for banks, reducing incentives to lend to the private sector.  

Dr Asiama noted that the return of macroeconomic stability had led to a gradual recovery in private sector credit growth, however, banks continued to report difficulties in identifying sufficient bankable projects for financing.  

To address the challenge, the Bank of Ghana is engaging stakeholders on ways to transform promising business ideas into investment-ready projects.  

The Governor said discussions were underway with the Ghana Venture Capital Fund and other institutions to establish mechanisms that would support entrepreneurs in developing business plans capable of attracting financing.  

He disclosed that the International Finance Corporation (IFC) had programmes aimed at helping entrepreneurs convert ideas into viable investment projects.  

Dr Asiama also highlighted plans to expand digital credit solutions to improve access to finance for individuals and small businesses.  

Technology should make it possible for entrepreneurs to secure modest amounts of capital through digital platforms without cumbersome procedures.  

The Governor noted that digital credit could become an important tool for supporting micro and small enterprises across the country.  

On cocoa financing, he said, the Bank of Ghana was working with the Ministry of Finance and COCOBOD to explore alternative funding arrangements.  

Rather than relying solely on bank loans, he suggested that COCOBOD could raise funds through commercial paper issued on the capital market.  

Dr Asiama observed that Ghana’s pension industry controlled more than GH¢100 billion in assets, creating opportunities to finance productive sectors through well-structured investment instruments.  

He said efforts were underway to develop financing structures that would attract institutional investors while reducing risks.  

The Governor expressed confidence in the achievement of improved access to credit and support private sector-led growth through a combination of lower interest rates, digital finance innovation and deeper capital markets.