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.
Quick Summary
Ghanaian SMEs faced high borrowing costs in May 2026, despite the Ghana Reference Rate remaining stable, according to a Bank of Ghana report. This
Summary - read the full story for complete context.
Image: The Chronicle
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from The Chronicle
Related Stories
More from Business & Economy
Ghanaian Youth under siege: The growing threat of online network marketing schemes
A recent investigation into online network marketing schemes reveals disturbing living conditions and potential public health risks among Ghanaian
4h ago•4 min read
ECOWAS backs $25bn Nigeria-Morocco Gas Pipeline as Africa pushes energy integration
A landmark agreement for a massive gas pipeline project has been reached, but what does this mean for Africa's energy future?
8h ago•3 min read
Oil settles 1% higher as hopes of renewed US-Iran negotiations offset Houthi threat
Amidst escalating tensions, a potential diplomatic breakthrough could reshape the future of oil prices and international relations.
11h ago•4 min read
West Africa signs off $25bn mega gas-pipeline plan
A monumental energy infrastructure project in West Africa has received top-level approval, promising to reshape the continent's energy landscape and
21h ago•4 min read
