Small and Medium-sized Enterprises (SMEs) in Ghana are facing sharply different borrowing costs depending on the bank they deal with, with some businesses paying more than three times the interest rate available to others for similar loans.
The disparity, highlighted in the Bank of Ghana’s Annualised Percentage Rate (APR) Report for May 2026, underscores the uneven cost of credit confronting businesses and the continued financing difficulties facing the SME sector.
For one-year SME loans, the highest APR recorded was 33.58% at Guaranty Trust Bank Ghana, while Standard Chartered Bank Ghana offered the lowest rate at 11.03%.
The difference represents a significant gap in the cost of borrowing for businesses seeking similar financing, potentially influencing the ability of smaller firms to expand, invest in equipment or create jobs.
The variations also persist across longer-term facilities.
Universal Merchant Bank recorded the highest APR for three-year SME loans at 31.09%, compared with 13.34% at Stanbic Bank Ghana.
For five-year SME facilities, the Agricultural Development Bank charged the highest APR at 25.07%, while Ecobank Ghana offered the lowest rate at 13.97%.
The figures highlight the extent to which a business’s choice of lender can determine the cost of accessing capital, with some SMEs paying a substantial premium for financing.
The situation is even more pronounced when SME borrowing costs are compared with those available to larger companies.
One-year corporate loans were available from as low as 7.62% at Absa Bank Ghana, while three-year corporate facilities started from 9.78%.
The lower rates available to large corporate borrowers reflect the stronger financial positions and credit profiles of established companies, which are generally considered less risky by banks.
For SMEs, however, higher perceived risks continue to translate into higher risk premiums and more expensive loans.
The Bank of Ghana’s report shows that the average Annualised Percentage Rate across the banking sector stood at 17.64% in May 2026, while the Ghana Reference Rate remained unchanged at 10.03%.
The APR captures the overall cost of borrowing by combining the benchmark reference rate with the risk premium applied by individual banks and other applicable lending charges.
The figures suggest that although competition exists within Ghana’s banking sector, access to affordable financing remains uneven, particularly for smaller businesses.
With SMEs accounting for a significant share of economic activity and employment, sustained high borrowing costs could limit their ability to grow, invest and contribute more significantly to economic expansion.
The wide variation in lending rates has therefore renewed attention on the need for more affordable and accessible credit options for smaller businesses, particularly as policymakers seek to drive private-sector growth and strengthen entrepreneurship.
