Ghana’s Economic Rebound Gains World Bank Praise Amidst Treasury Bill Shortfalls and Banking Sector Growth

Yesterday•3 min read•19 sources

Ghana’s economic recovery has reached a pivotal milestone, earning significant praise from the World Bank for its "impressive turnaround" over the past year. During high-level meetings in Washington, World Bank officials, including Regional Vice President Ousmane Diagana, commended Finance Minister Dr. Cassiel Ato Forson for fiscal reforms that have seen inflation plummet from 23% to a remarkable 3.2%. This stabilization, supported by the Bank of Ghana’s tighter monetary conditions and regulatory reforms, has restored institutional credibility and bolstered currency stability. However, stakeholders warn that the recovery remains "fragile," requiring sustained fiscal discipline to balance growth with inflation control as the nation positions 2025 and 2026 as critical years for debt sustainability and inclusive development.

Despite the macro-economic optimism, the government faces immediate hurdles in the domestic debt market. For four consecutive weeks, Treasury bill auctions have been undersubscribed, recently missing a GH¢7.57 billion target by approximately 29.3%. Investor appetite appears to be weakening for longer-term debt, even as interest rates continue to climb—with the 91-day bill rising to 4.91% and the 364-day bill surging to 9.97%. This liquidity squeeze occurs alongside a paradox in the banking sector; while commercial giants like GCB Bank PLC reported a 67.4% surge in pre-tax profits to GH¢3.17 billion and proposed a GH¢1.00 dividend for the 2025 financial year, average lending rates for businesses remain prohibitively high at over 30%, hindering the growth of small and medium-sized enterprises.

In the digital finance and corporate space, the industry is undergoing a significant structural transformation. MobileMoney Limited has successfully completed its regulatory separation from MTN Ghana to comply with the Payment Systems and Services Act, a move CEO Shaibu Haruna describes as a milestone for independent innovation in credit and insurance. Despite 70% smartphone ownership among users, only 1.2% of mobile money transactions currently occur via apps, prompting a strategic push toward app-based services to improve user experience and combat evolving fraud. Meanwhile, the Ghana Stock Exchange (GSE) has shown robust performance, with market capitalization hitting GH¢248.26 billion and the GSE Composite Index gaining 50% year-to-date, largely driven by heavy trading in MTN Ghana shares and gains in the financial and energy sectors.

Looking ahead, Ghana’s economic agenda is shifting toward regional integration and strategic sectoral support. The ECOWAS Bank for Investment and Development (EBID) recently launched its 2026–2030 "Growth, Resilience and Optimisation" (GRO) Strategy in Accra, earmarking investments for infrastructure, agriculture, and digital transformation across West Africa. Local financial institutions are also diversifying their focus, with Stanbic Bank advocating for blended finance solutions to boost the pharmaceutical sector and Activa International promoting credit insurance to empower SME exporters. As the government prepares for its next development phase, the successful consolidation of these gains will depend on bridging the gap between high-level fiscal stability and accessible, affordable credit for the broader private sector.

More from business

Continue exploring similar stories

The AAK enterprise has come as a major intervention for women empowerment

business|Yesterday

Ghana’s Economic Landscape: Industrial Growth, SME Empowerment, and Agricultural Shifts Drive Development

Ghana’s business environment is experiencing a significant shift as the nation balances industrial expansion with a concerted effort to empower small and medium enterprises (SMEs) and address sector-specific challenges. A major milestone in industrialization was reached through a landmark Memorandum of Understanding between the Ministry of Food and Agriculture and the Sentuo Group Limited. This partnership aims to establish agro-processing facilities and a national fertilizer manufacturing plant, signaling a move from raw commodity exports toward a robust agro-industrial economy. This progress is mirrored in the maritime sector, where the Tema Shipyard and Drydock Limited has reported a remarkable 55% revenue growth under the leadership of CEO Alhaji Osman Sulemana, transforming the facility into a modern maritime hub. Additionally, the real estate sector received a boost with the launch of the Prime Accra project by KASA Properties, which is expected to reshape the capital's skyline and create numerous urban development opportunities. While large-scale projects drive national infrastructure, financial institutions and educational bodies are focusing on the backbone of the economy: local enterprises and talent. Republic Bank (Ghana) PLC recently reaffirmed its commitment to scaling up local businesses following the Kwahu Business Forum, emphasizing the need for a supportive ecosystem for maturing firms. Similarly, Stanbic Bank Ghana, in collaboration with PrymeAds, has launched a digital skills training program through its Business Incubator to equip SMEs with essential marketing and data analytics tools. These efforts are complemented by academic initiatives, such as the African University of Communication and Business (AUCB) providing practical business training to students and Fidelity Bank’s donation of 50 laptops to the University of Ghana, all aimed at bridging the digital and skills gap for the next generation of entrepreneurs. In the agricultural and creative sectors, the narrative is one of both immense potential and urgent calls for intervention. Experts like Kwaku Boateng of the Coconut Federation of Ghana are advocating for increased investment in coconut production, citing its capacity to stabilize the economy and provide alternative livelihoods. This is echoed by the success of the Kolo Nafaso initiative, which has empowered over 250,000 women in the shea kernel sector through fair market access and pre-financing. However, a stark contrast is visible in the Shai Osudoku District, where rice farmers in Asutsuare are facing a financial crisis due to unsold produce and competition from imported rice. Farmers are calling for urgent government action on fair pricing and infrastructure to prevent further post-harvest losses and financial distress. Ultimately, the sustainability of Ghana’s economic growth depends on a combination of strategic leadership and inclusive support systems. Leadership experts emphasize that clear accountability and reporting discipline are essential for CEOs to drive organizational performance. Furthermore, initiatives like the Ninani Group’s D.A. Twum Jnr. Fellowship are working to enhance talent quality in the creative and marketing sectors through structured mentorship. As Ghana Gas clears its name of procurement irregularity allegations and focuses on operational risk management, the broader business community remains focused on a dual-track strategy: leveraging large-scale industrial partnerships while ensuring that local SMEs and vulnerable agricultural sectors are provided the tools and market protections necessary to thrive in an increasingly competitive global environment.

business|Yesterday

Ghana’s Power Sector Overhaul: New Night Tariffs and Infrastructure Upgrades to Support 24-Hour Economy

The Public Utilities Regulatory Commission (PURC) is set to transform Ghana's industrial landscape with the introduction of a new electricity tariff regime designed to incentivize nighttime business operations. This initiative, developed in collaboration with the Energy Commission and the Electricity Company of Ghana (ECG), aims to offer significantly lower power rates during off-peak hours, specifically from 11:00 p.m. to 4:00 a.m. The policy is a central component of the push toward a 24-hour economy, providing the financial relief necessary for businesses to scale operations into the night while supporting the adoption of electric vehicles and enhancing overall commercial productivity. To facilitate this transition, specialized smart meters will be deployed to automatically track and apply the reduced rates during the designated off-peak windows. Complementing these policy shifts are significant investments in the nation’s power transmission infrastructure. The Ghana Grid Company (GRIDCo) has successfully commissioned a new 120/145MVA Siemens Energy power transformer at the Afienya Substation. This upgrade more than doubles the substation's previous capacity of 66MVA, directly addressing long-standing overloading issues that have historically affected the reliability of supply to Accra, Dawhenya, and neighboring communities. According to GRIDCo officials, the project was executed entirely by internal engineers, highlighting a commitment to technical excellence and grid stability as the demand for electricity continues to grow across major urban and industrial hubs. While these long-term upgrades are being finalized, the ECG is also focusing on immediate grid maintenance to ensure service reliability across multiple regions. Scheduled and emergency works have been coordinated across the Central, Volta, Tema, and Accra West regions, alongside efforts to rectify network faults in the Ashanti South Region. While these maintenance activities necessitate temporary power disruptions, the utility provider emphasizes that such works are critical for stabilizing the national grid and preventing future systemic failures. The combination of targeted maintenance, infrastructure expansion at the Afienya substation, and the PURC’s innovative tariff structures reflects a multi-tiered strategy to provide the reliable, affordable energy essential for Ghana's industrial and commercial growth.

business|Yesterday

Ghana’s Petroleum Sector in Flux: Record Consumption Meets Mounting Revenue Losses and Market Shifts

Ghana’s petroleum landscape in 2025 is defined by a sharp contrast between booming domestic demand and significant fiscal challenges. Total petroleum product consumption surged by 15.29% to reach 7.45 billion litres, driven largely by massive increases in fuel allocation for power generation—specifically fuel oil, which saw a staggering 946% increase. Amidst this growth, a historic shift occurred in the retail market, where Star Oil recorded a 27.76% growth in sales to surpass GOIL PLC as the nation’s market leader, capturing a 10.68% market share. However, these industry gains are heavily overshadowed by a governance crisis and massive revenue leakages that threaten to undermine investor confidence in the upstream and downstream sectors. According to reports from the Public Interest and Accountability Committee (PIAC) and the 2025 Petroleum Product Analysis, the state is grappling with severe financial discrepancies. The government lost over GH¢600 million in tax revenue due to 199 million litres of unaccounted petroleum products, representing 2.1% of the total supply. This loss is attributed to illegal activities and inadequate monitoring across the value chain. In the upstream sector, petroleum receipts plummeted from $1.36 billion in 2024 to $770 million in 2025, as crude production dropped to 37.3 million barrels. PIAC further highlighted a financial crisis within the Ghana National Petroleum Corporation (GNPC), flagging $561.65 million in unaccounted revenues owed by its subsidiary, Explorco. While retail competition intensifies, with firms like Star Oil and Gaso Petroleum seeing significant volume gains, the nation remains precariously dependent on imports. Domestic refinery output covered only about 18-25% of national consumption, exposing the economy to the volatility of the global market. This vulnerability has been exacerbated by geopolitical tensions in the Middle East involving the U.S., Israel, and Iran, which have pushed oil prices toward the $115 per barrel mark. Although the Ghanaian government recently directed fuel price cuts to provide relief to households and small businesses, the Institute for Energy Security (IES) has cautioned against populist moves such as scrapping the Bulk Oil Storage and Transportation (BOST) margin, citing its necessity for maintaining strategic reserves and infrastructure. To restore stability and credibility to the sector, stakeholders are calling for urgent structural reforms. PIAC and industry analysts emphasize the need for stricter regulatory oversight, the integration of modular refineries into national tracking systems, and the immediate recovery of outstanding debts owed to the state. While Ghana secured $3.5 billion in investment commitments and saw growth in the Heritage Fund to $1.38 billion, the long-term health of the industry depends on the government's ability to curb illegal leakages and enhance domestic refining capacity to mitigate the impact of imported inflation.

business|Yesterday

Ghana's Trade Sector Tensions Ease as GUTA Suspends Strike Over Publican AI System Implementation

The Ghana Union of Traders’ Associations (GUTA) has suspended a planned nationwide industrial action originally scheduled for April 13 to April 17, 2026. This decision follows a breakthrough meeting with government representatives and the Ghana Shippers’ Authority regarding the implementation of the controversial Publican AI system at the nation's ports. While the strike was intended to halt duty payments and import activities across the country, GUTA leadership opted to postpone the action after stakeholders opened doors for further consultations. The suspension aims to facilitate a more structured dialogue to address the operational challenges that have recently plagued the trade community. The core of the dispute centers on the Publican AI system, which freight forwarders and traders claim has caused severe disruptions to port operations. A coalition of trade and freight forwarders’ associations, including the Ghana Institute of Freight Forwarders, reported that the AI-driven system has led to inflated duty assessments, significant delays in cargo clearance, and unresolved valuation disputes. Before the suspension, GUTA President Clement Boateng had directed members to halt all import activities and duty payments, demanding an immediate review of the system. Proponents of the strike argued that these inefficiencies have significantly increased the cost of doing business, threatening the stability of the trade sector. In contrast to the traders' grievances, the Importers and Exporters Association of Ghana (IEAG) has expressed support for the Publican AI system. IEAG Executive Secretary Samson Asaki Awingobit cautioned that calls for the system’s suspension are premature, emphasizing its potential to modernize customs and prevent revenue loss. According to the IEAG, the AI system is designed to correct long-standing issues of under-declaration and promote fairness in the import sector. They maintain that the government's recent tax relief initiatives show receptiveness to business concerns and that the system's role in improving revenue mobilization is vital for the national economy. As the industrial action remains suspended, the focus shifts to high-level negotiations scheduled for later this week, including a meeting with the Minister of Transport on April 16, 2026. Prof. Ransford Gyampo of the Ghana Shippers’ Authority has emphasized that continued dialogue is the only viable path to resolving the dispute. While the immediate threat of a trade shutdown has subsided, GUTA and its partners have warned that they will monitor the situation closely. The outcome of the upcoming consultations will determine whether the government can successfully integrate AI technology at the ports without further alienating the nation’s trading community.

Stay Informed

Explore

Features

Legal

Ghana’s Economic Rebound Gains World Bank Praise Amidst Treasury Bill Shortfalls and Banking Sector Growth

More from business

Ghana’s Economic Landscape: Industrial Growth, SME Empowerment, and Agricultural Shifts Drive Development

Ghana’s Power Sector Overhaul: New Night Tariffs and Infrastructure Upgrades to Support 24-Hour Economy

Ghana’s Petroleum Sector in Flux: Record Consumption Meets Mounting Revenue Losses and Market Shifts

Ghana's Trade Sector Tensions Ease as GUTA Suspends Strike Over Publican AI System Implementation