SMEs face high borrowing costs despite stable reference rate

Small and Medium-sized Enterprises (SMEs) faced high borrowing costs in May 2026 despite the Ghana Reference Rate remaining at 10.03 per cent, according to the latest Bank of Ghana Annualised Percentage Rates (APR) report. The report showed that many SMEs were paying significantly higher rates than the benchmark rate to access loans from the banks. The lowest APR for a one-year SME loan was 11.03 per cent, offered by Standard Chartered Bank Ghana Limited, while the highest was 33.58 per cent, charged by Guaranty Trust Bank (Ghana) Limited.

For a three-year SME loan, APRs ranged from 13.34 per cent at Stanbic Bank Ghana Limited to 31.09 per cent at Universal Merchant Bank Limited. A five-year SME loan attracted APRs of between 13.97 per cent at Ecobank Ghana Limited and 25.07 per cent at Agricultural Development Bank Limited. Business operators have often complained that high lending rates make it difficult for them to expand their operations, purchase equipment, and create new jobs. SMEs account for about 92 per cent of businesses in the country and contribute nearly 70 per cent of Gross Domestic Product (GDP). The Bank of Ghana (BoG) noted that differences in lending rates among banks were influenced by factors such as risk assessment and other charges applied to loans. The average APR across all loan categories stood at 17.64 per cent.