Finance

Ghana: Banking loans to the private sector grew by 18.3% in 2019

Tuesday, 11 February 2020 13:29
Ghana: Banking loans to the private sector grew by 18.3% in 2019

(Ecofin Agency) - Last year, companies operating in the private sector in Ghana obtained a total of 44.5 billion cedis (about $8.1 billion) in credit from commercial banks. This makes an increase by 18.3% compared to 2018 when growth was 10.6%, the Central Bank’s monetary policy committee reports.

The good evolution is the result of growing demands for credit in the Ghanaian private sector, motivated by good economic growth outlook, and the improvement in the banks' ability to finance the economy, following capital increases at the end of 2018. Banks had more liquidity and therefore more capacity to finance the economy.

On a macroeconomic level, Ghana performed well in 2019. Prices of main export commodities (cocoa, gold, and oil) grew by more than 10% over the year, with gold peaking at 18.4%. Surplus revenues boosted the dynamism of the services, trade and finance sectors, which benefited from most of the lending to the private sector in 2019.

In an analyst note released on Feb 5, Moody’s estimated that lending to private sector will follow an upward trend in 2020, thanks to the reduction in bad debts which now put less pressure on the banks’ asset quality. The share of bad debts in the total lending slid from 25.8% in April 2018 to 13.9% at the end of December 2019, according to the rating agency.

The performances of the 9 local banks listed on the Ghana Stock Exchange is now to be followed to assess the impact of the positive dynamic of the banking sector. Together, the 9 banks have a combined capitalization of nearly $1.7 billion.

Idriss Linge



 
Telecom


 
Public Management


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.