Private Sector Credit Growth Contracts by 7.1% to GHS 106 Billion in 2025
Data contained in the January 2026 Monetary Policy Report published by the Bank of Ghana shows that credit to the private sector comprising loans to private enterprises and households grew by 19.2% to GH¢106.2 billion in December 2025. This represents a slower pace of expansion compared to the 26.3% growth recorded in 2024 – marking a 7.1% contraction in the growth of credit to the private sector.
Despite the nominal increase, the report notes that credit to the private sector declined in real terms in 2025 relative to the previous year, reflecting the impact of prevailing macroeconomic conditions on lending activity.
Credit to the public sector also contracted sharply in 2025, declining by 25.5% to GH¢4.8 billion at the end of December, a development that signals a moderation in government borrowing and spending activities during the year
Meanwhile, the total stock of gross loans and advances within the banking industry increased by 16.2% to GH¢111.0 billion in December 2025. This compares with a stronger growth of 24.1% recorded in December 2024.
Sectoral distribution of credit
An analysis of the sectoral allocation of credit indicates that the services sector remained the largest recipient of bank lending. The sector accounted for 37.1% of total industry credit at the end of December 2025, up from 31.7% recorded in the same period in 2024.
The commerce and finance sector followed with a share of 24.3%, although this represented a decline from the 27.0% recorded a year earlier.
Credit to the manufacturing sector increased marginally, with its share rising to 10.7% in December 2025 from 10.5% in December 2024.
Collectively, the services, commerce and finance, and manufacturing sectors accounted for 72.1% of total credit at the end of December 2025, compared with 69.3% in the corresponding period of 2024.
At the lower end of the credit distribution, the electricity, water and gas sector recorded the smallest share of total lending, accounting for 3.0% in December 2025, down from 4.1% a year earlier.
