Ghanaian SMEs face dramatically different borrowing costs depending on their bank choice, new Central Bank data reveals.
ABSA, Republic Bank, and Bank of Africa emerged as the most affordable lenders in June 2025, while others charged over double their rates—potentially crippling small businesses.
The Bank of Ghana’s annualised percentage rate (APR) report, measuring true loan costs including fees, shows ABSA led 1-year loans at 17.03% APR—less than half Fidelity Bank’s 44.54% and Consolidated Bank Ghana’s 45.13%. For a typical ₵100,000 loan, this gap could cost businesses ₵28,000 extra in one year.
Republic Bank topped 3-year terms (28.63%), trailed by Bank of Africa (30.96%), while Access Bank and Ecobank hovered near 35.5%. Over five years, Bank of Africa’s 23.37% APR contrasted sharply with Agricultural Development Bank’s 45.92%—a spread that could double total interest payments.
“That difference breaks businesses,” says Kofi Mensah, an Accra-based food processor who refinanced using the report. “Many SMEs don’t realize how much they overpay by not comparing.”
The data underscores a fragmented lending landscape where bank selection directly impacts survival. With Ghana’s inflation easing to 15% last month, the wide APR gaps suggest factors beyond macroeconomics—like operational efficiency and risk models—drive disparities.
The central bank urges SMEs to use its monthly APR snapshots when shopping for loans. Next data arrives in August.
