The Association of Ghana Industries (AGI) has urged the Bank of Ghana (BoG) to further reduce the monetary policy rate, warning that high borrowing costs could hinder the effective implementation of the newly passed 24-hour economy authority law.

Although the policy rate was recently lowered to 15.5%, AGI said credit remains prohibitively expensive for businesses aiming to expand operations and meet the demands of a round-the-clock economic framework. The association warned that without significantly cheaper financing, many firms may struggle to scale production, invest in equipment, and operate effectively under a 24-hour system.

Speaking to Citi Business News, AGI’s Greater Accra Regional Chairman, Tsonam Akpeloo, acknowledged the recent reduction as a positive step but said it remains uncompetitive by continental standards.

“Currently, the policy rate is about 15.5%. That is good, but it’s still one of the highest in the world. We look forward to a time when borrowing can happen at 8%, as in Ethiopia, or 10%, as in Johannesburg. Yes, it is relatively better, but in Ghana today, you can only access facilities at about 20% in Cedi terms,” he said.

Mr. Akpeloo noted that Ghanaian firms are competing not only domestically but across Africa, against businesses operating in lower interest rate environments.

“You’re competing not only with companies within Ghana but with every company in the African region. The issue of policy rate and borrowing costs is no longer local — it’s continental. Our focus is benchmarking our rates against what you see in Kenya or Egypt,” he explained.

AGI believes that with inflation moderating and macroeconomic stability gradually improving, the central bank has room to adopt a more growth-friendly stance. The association said deeper cuts to the policy rate would stimulate private sector growth, boost Ghana’s competitiveness under the African Continental Free Trade Area (AfCFTA), and accelerate job creation.