BTA Admin Bank of Ghana data shows lending rates for small businesses remain well above the reference rate, underscoring the financing challenges facing a sector that accounts for more than 90% of businesses in the country.
Ghana’s small and medium-sized enterprises (SMEs) continued to face elevated borrowing costs in May 2026 despite a stable benchmark lending rate, highlighting the persistent financing challenges confronting one of the country’s most important economic sectors.
According to the Bank of Ghana’s latest Annualised Percentage Rate (APR) report, the Ghana Reference Rate remained unchanged at 10.03%, but the actual cost of borrowing for many SMEs was significantly higher, reflecting differences in banks’ pricing, risk assessments and additional loan charges.
The findings illustrate the widening gap between benchmark interest rates and the rates businesses ultimately pay to access credit.
Wide gap in lending rates
The report showed that Standard Chartered Bank Ghana offered the lowest annualised percentage rate for a one-year SME loan at 11.03%, while Guaranty Trust Bank (Ghana) recorded the highest at 33.58%.
For three-year SME loans, borrowing costs ranged from 13.34% at Stanbic Bank Ghana to 31.09% at Universal Merchant Bank.
Five-year SME facilities were priced between 13.97% at Ecobank Ghana and 25.07% at Agricultural Development Bank (ADB).
Overall, the average annualised percentage rate across all loan categories stood at 17.64%, substantially above the Bank of Ghana’s reference rate.
Financing remains a major obstacle
The figures reinforce longstanding concerns among business owners that expensive credit continues to limit investment and expansion.
Many SMEs have argued that high borrowing costs make it difficult to purchase equipment, expand operations, hire additional workers and improve productivity.
Limited access to affordable financing has remained one of the biggest structural constraints on private sector growth, particularly for smaller businesses with limited collateral and shorter operating histories.
A sector critical to Ghana’s economy
SMEs play a central role in Ghana’s economy.
Government and industry estimates indicate that the sector accounts for approximately 92% of businesses nationwide and contributes close to 70% of Ghana’s Gross Domestic Product (GDP).
Given its importance to employment and economic activity, improving access to affordable finance has become a key policy priority for both government and financial sector regulators.
Why borrowing costs differ
The Bank of Ghana said lending rates vary across financial institutions because banks apply different credit risk assessments, pricing models and additional charges when evaluating loan applications.
As a result, businesses with similar financing needs can face significantly different borrowing costs depending on the lender and the perceived level of risk.
While the stable reference rate signals improving macroeconomic conditions, the latest data suggests those gains have yet to translate into substantially cheaper credit for much of Ghana’s SME sector.
Although Ghana’s benchmark lending rate has stabilised, borrowing remains expensive for many small businesses.
With SMEs accounting for the overwhelming majority of businesses and a significant share of economic output, narrowing the gap between benchmark rates and commercial lending costs could play a critical role in supporting investment, job creation and long-term economic growth.
