When Bank of Ghana (BoG) Governor Dr. Johnson Pandit Asiama told the Kwahu Business Forum that his daily ambition is to bring interest rates down to below 10%, he gave businesses and households something they have long stopped expecting: hope. But banking consultant Dr. Richmond Atuahene says hope, without structural reform, will not be enough.
In a research paper shared with The High Street Journal, Dr. Atuahene acknowledges that the Governor’s target is valid but sets out six strategic reforms that he argues are essential for translating that ambition into reality. The central bank cut its MPR to 14% in January 2026, the lowest since February 2022, yet commercial lending rates remain well above 25%, reflecting the structural gaps Dr. Atuahene’s analysis seeks to address.
The first and most urgent fix, according to the analyst, is clearing government arrears. Unpaid debts to contractors and businesses, particularly in the energy and infrastructure sectors, have pushed non-performing loans (NPLs) to dangerous levels, forcing banks to price higher risk into lending rates. Clearing those obligations would directly improve bank balance sheets and free credit at cheaper rates.
Dr. Atuahene’s second recommendation centres on building and sustaining macroeconomic stability. Low inflation, a stable exchange rate, manageable public debt, and disciplined fiscal policy create the predictable environment that allows banks to lend with less risk, and therefore at lower cost. Ghana’s inflation fell to approximately 3.2% in early 2026, offering a platform not available for years.
Third, he calls for a continued, gradual reduction of the Monetary Policy Rate, in step with declining inflation, while cautioning that the pace must account for global uncertainties, including the current oil price surge and tighter external financial conditions.
His fourth recommendation targets government borrowing from the domestic market, which he argues has long crowded out the private sector. When the state competes aggressively for funds, banks channel capital toward government instruments rather than businesses. Reducing reliance on short-term domestic borrowing would expand credit availability and ease upward pressure on rates.
Dr. Atuahene’s fifth proposal would lower cash reserve requirements, the proportion of deposits banks must hold with the central bank without earning interest. He describes this as an implicit cost that constrains banks’ lending capacity. Reducing it would inject liquidity into the system and create room for lower rates.
The sixth and final recommendation addresses Ghana’s slow loan recovery environment. Dr. Atuahene proposes the establishment of fast-track digital courts dedicated to debt recovery, arguing that delays in resolving credit disputes force banks to embed high risk premiums into interest rates. Faster enforcement, he contends, would reduce those premiums and restore confidence in the credit system.
Taken together, the six reforms target government finances, banking sector risk, legal infrastructure, and macroeconomic management, underscoring that no single policy lever can close the gap between the current lending environment and the 10% target the Governor has set as his legacy goal.
For ordinary Ghanaians, the stakes are concrete: cheaper loans, more accessible business credit, expanding employment, and a financial system that works for the many rather than the few.
