- GUTA Presses for Affordable Loans and Lower Costs as Budget Approaches
As Ghana prepares for the 2027 Budget, the Ghana Union of Traders’ Associations (GUTA) is pressing for cheaper credit and measures to reduce the cost of doing business.
The call goes to the heart of the next economic policy test: whether improving macroeconomic conditions can translate into more affordable finance and stronger cash flow for companies.
The Finance Minister is due to present the budget on November 12, with the government’s New Economy programme expected to set the direction for investment and growth.
For traders, however, the change in economic direction will be judged less by its ambition than by whether businesses can borrow at rates they can manage, move goods through the ports without costly delays and generate enough revenue to service their debts.
GUTA President Clement Boateng has previously captured the financing problem in a concise phrase: “facilities are accessible, they are not affordable.” The distinction is important.
A business may qualify for a loan and still decide against borrowing if interest charges consume the expected return or if repayments begin before the goods financed by the facility can be sold.
The figures show that borrowing conditions have eased, but the improvement has not yet made credit cheap for every business. The Bank of Ghana’s October investor bulletin reported that the average commercial lending rate had fallen to 15.94% in August 2026 from 24.15% a year earlier.
The central bank’s policy rate has been held at 14.00% since March. The Ghana Reference Rate, a benchmark used in pricing some loans, stood at 10.01% in November. These are signs of easing, but the actual rate offered to a borrower still depends on the bank’s assessment of risk, the loan’s terms and the borrower’s financial record.
That gap between a lower benchmark and the cost faced by an individual trader is where the budget debate becomes more concrete. A policy announcement cannot oblige every bank to lend at one rate, nor can a lower benchmark erase the risks lenders price into loans.
But government can influence the broader environment: the predictability of its borrowing, the speed of payments to suppliers, the quality of credit information and the efficiency of the rules businesses must navigate.
The timing of repayments can matter as much as the headline interest rate. Traders who borrow to finance imports may be required to begin repayments before their goods have arrived, cleared customs and generated sales.
This creates a mismatch between the period in which the loan is due and the period in which the business can earn the money to repay it.
The problem has become more visible amid shipping disruption. Boateng has described consignments from the United Arab Emirates taking about three to four months to reach Ghana, compared with the earlier expectation of 45 to 60 days.
Once goods reach port, congestion can add further delays. He has called for a repayment moratorium to give traders breathing space while goods are still in transit.
A grace period could ease pressure on businesses caught between shipping delays and repayment schedules, but it would need to be designed carefully. A blanket moratorium could increase the cost of lending or make banks more cautious about financing importers.
A more targeted approach could link repayment schedules to the type of trade cycle, shipment documentation and agreed delivery periods, while leaving lenders able to assess the borrower’s capacity and risk.
The same principle applies to cheaper credit. A lower rate can support working capital and expansion, but only if the loan period matches the business activity it finances. Short-term facilities may suit inventory purchases, while machinery, factory expansion and other longer-term investments need more time before they begin generating revenue.
A budget that focuses only on lowering interest costs could miss the importance of loan maturity, repayment schedules and access for small firms without extensive collateral.
Traders’ borrowing costs cannot be separated from the expenses involved in moving goods and running a business. Port congestion, extended clearance procedures, freight charges and other operating costs can tie up working capital.
When goods are delayed, a trader may face interest charges, storage costs and lost sales at the same time.
The 2027 Budget could therefore be judged on whether it tackles these pressures alongside its wider investment plans. Faster, more predictable customs clearance would help businesses plan and turn inventory into revenue.
More transparent fees and simpler procedures could reduce uncertainty, while improved port operations could shorten the period firms need to finance goods before they are sold.
There is also a wider tax and compliance question. If businesses face rules they find difficult to understand or administer, the cost of compliance can weigh heavily on smaller traders.
Any changes should balance relief with the need to fund public services and support revenue mobilisation. The design matters: poorly targeted tax cuts can reduce government revenue without making the business environment significantly more competitive.
Government has limited room to meet every request. A budget that reduces revenue or increases spending without a credible financing plan could put pressure back on interest rates and weaken the gains in stability that have helped lower borrowing benchmarks.
Heavy government demand for credit can also compete with businesses for funds. The budget must therefore show how business support can be delivered without creating new instability or crowding out private investment.
That is why GUTA’s call should be read as a demand for a broader reduction in the cost of doing business, with affordable finance as one part of the equation. The measure of success will not be a single policy rate or a loan scheme announcement.
It will be whether viable businesses can obtain financing on terms that fit their cash flows, and whether lower financing costs survive contact with the expenses of importing, clearing and selling goods.
The New Economy programme promises to shift attention from stabilisation towards production, investment and jobs. Traders are asking that the transition be felt in the day-to-day economics of running a business.
The budget’s challenge is to convert lower inflation and reduced market rates into working conditions that make investment possible: reliable logistics, predictable rules and loans that businesses can repay from their operations.
Cheaper credit may help traders expand. But if goods remain delayed, costs keep rising and repayments arrive before sales, lower rates alone will not resolve the pressure. The 2027 Budget will need to address the entire business cycle from financing and shipment to clearance, sale and repayment if economic recovery is to become a practical opportunity for Ghanaian enterprises.
