By Prince Antwi
Copyright ghanaguardian
The success of government’s planned 24-hour economy will hinge on how far banks are willing to expand credit while maintaining sound risk management, according to policymakers and advisers at a banking sector roundtable in Accra.
The initiative, which government describes as a private sector-led programme, seeks to boost productivity, create jobs and attract investment through round-the-clock economic activity. Under the policy, the Bank of Ghana (BoG) has been tasked with safeguarding financial stability and ensuring conditions that allow banks to support the agenda.
Delivering remarks on behalf of BoG Governor Johnson Pandit Asiama, the Director of Banking Supervision, Ismail Adam, said the central bank views the 24-hour economy as an opportunity to stimulate capital formation, improve asset utilisation, and generate employment.
“No nation has developed without appreciable growth in the financial sector. The programme’s success therefore rests on the soundness of banks and availability of affordable credit,” he stated.
Mr. Adam explained that by maintaining price stability and reducing inflation, the BoG could create room for lower interest rates, thereby widening access to credit. He cautioned, however, that banks must strengthen governance and risk controls to prevent systemic failures.
The central bank also underscored the importance of digital payment infrastructure, noting that wider use of ATMs, online platforms and mobile money will lower transaction costs and ensure liquidity for round-the-clock economic activity. Institutions such as Development Bank Ghana were highlighted as critical providers of long-term capital to support industries aligned with the policy.
Despite optimism, officials acknowledged persistent obstacles. The 24-Hour Economy Secretariat noted that high borrowing costs, strict collateral demands, and short-term lending structures continue to constrain businesses, particularly micro, small and medium-sized enterprises (MSMEs).
Presidential Adviser Goosie Tanoh said these concerns remain the biggest complaints from entrepreneurs, adding that regulatory inefficiencies and the diversion of banking resources into government financing have also hindered enterprise development.
“The policy is centred on MSMEs, cooperatives, and both local and foreign firms. But without more flexible credit, their ability to scale up remains limited,” he observed.
To address the challenges, the Secretariat has begun working with banks and other stakeholders to design financing packages that balance central bank standards with lender profitability.
“We believe we have a package of workable solutions that you can help us improve and use to drive growth and profitability for entrepreneurs and the banks,” Mr. Tanoh said.
The discussions mark a key step in aligning financial sector reforms with government’s broader vision of building a dynamic 24-hour economy.
