Cheaper Credit, Bigger Opportunities: Absa Signals Lending Revival

Absa Bank Ghana has signalled a renewed window of opportunity for businesses seeking credit, pointing to improving macroeconomic stability as a key factor driving more favourable lending conditions. Speaking at the Kwahu Business Forum on Friday, April 3, the bank’s Executive Director for Retail and Business Banking, Kobla Nyalete, said the decline in interest rates is reshaping the financing landscape for businesses across the country. According to him, current interest rates hovering between 8 and 12 per cent are allowing banks to offer loans at relatively reduced rates, typically between 12 and 14 per cent, without the need for significant discounts. He described the development as a rare and timely opportunity for the private sector, noting that such favourable borrowing conditions have not been experienced in recent years. Mr Nyalete also commended government efforts in stabilising the macroeconomic environment, emphasising that improved economic fundamentals are critical in restoring investor confidence and driving business growth. Reaffirming the bank’s commitment to supporting enterprises, particularly small and medium-sized businesses, he referenced Absa’s earlier interventions, including its 10 per cent SME loan initiative introduced during more challenging economic periods. “We are ready to fund you. We are actively looking for bankable deals, so please engage with us,” he urged. “After this session, I encourage business leaders to approach me and my colleagues in the foyer. At Absa, our commitment to lending is evident—we remain the top lender to Ghanaian businesses among the country’s leading banks.”