The Bank of Ghana has urged commercial banks to redesign agricultural SME financing so loan terms reflect seasonal production cycles, arguing that Ghana’s improving economy must translate into usable credit for productive businesses.
Governor Dr Johnson Pandit Asiama said the recovery in private sector lending has not removed the financing barriers facing small and medium sized enterprises, particularly those in the agricultural value chain.
Private Credit Records Sharp Rebound
Speaking at a post Monetary Policy Committee meeting with heads of commercial banks at the Bank Square on Wednesday, August 12, Dr Asiama said private sector credit grew by 41.2 per cent in June 2026.
That was a sharp increase from 8.6 per cent a year earlier. After adjusting for inflation, real private sector credit expanded by 34.1 per cent.
The figures point to banks lending more actively as interest rates moderate and Ghana’s macroeconomic conditions improve. They do not necessarily mean credit is reaching every part of the economy.
“Despite the improved economic environment and the growing demand for credit, many SMEs, particularly those in the agricultural value chain, still struggle to access finance because banks continue to perceive these businesses as relatively high risk.” - Dr Asiama
Agricultural enterprises often earn revenue at specific points in their production cycle. Conventional monthly repayments can become difficult when instalments fall due before crops are harvested, processed or sold.
Repayments Must Follow Cash Flows
Dr Asiama asked banks to study the sectors they finance more closely and move away from products designed without regard for how agricultural businesses generate income.
“As banks, you are not merely financial intermediaries; you are important business partners in the growth and transformation of the economy,” he told the banking executives.
The Governor said adaptable credit products should recognise the seasonal nature of farming and related activities. Repayment schedules should follow the timing and pattern of each borrower’s cash flow.
“This should include developing innovative and flexible credit products that recognise the seasonal nature of agricultural activities and align loan repayment schedules with the timing and pattern of borrowers’ cash flows.” - Dr Asiama
Such lending would not require banks to ignore risk. A better understanding of production cycles could help lenders assess risk more accurately while giving viable businesses a fairer chance of securing credit.
Macroeconomic Gains Face Practical Test
Lower inflation, relative exchange rate stability and easing financial conditions have created room for banks to support more businesses and households. The test is whether those improvements can now reach enterprises that have traditionally struggled to meet rigid lending requirements.
Dr Asiama said banks are “well positioned to play a central role” in converting stability into wider economic activity and employment.
Agricultural SMEs will still need reliable records, credible business plans and transparent cash flow information to support credit assessments.
A 41.2 per cent rise in private sector credit is impressive on paper. Its value will depend on where the money goes and whether it helps businesses expand production and create jobs.
For agricultural SMEs, the Governor’s proposal is straightforward: a loan should follow the rhythm of the business it is meant to finance.
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