Despite easing lending rates in the formal banking sector and improving macroeconomic indicators, many traders in Ghana’s informal sector say access to credit remains expensive, highlighting the slow transmission of lower interest rates to small businesses outside mainstream banking.

For thousands of market women and petty traders who depend largely on microfinance institutions and other non-bank lenders for working capital, borrowing continues to come with high upfront commitments and relatively short repayment periods, even as broader financing conditions begin to improve.

“If I go for a loan of 4,000 cedis, I’m asked to make a down payment of 700 cedis, with repayment expected within four to six months. And when you’re unable to pay, some lenders threaten you with police and court actions,” Mariama, a vegetable trader at Ashaiman Market, told Citi Business News.

The concerns come at a time when the Bank of Ghana has reduced its policy rate to 14 percent, while the Ghana Reference Rate (GRR) has declined significantly to 10.03 percent from 14.58 percent in February 2026. Average lending rates in the formal banking sector have also eased to about 19.7 percent.

However, many traders say those reductions are yet to meaningfully impact borrowing conditions within the informal sector, where access to quick and flexible financing often comes at a higher cost.

“We have taken loans but have struggled to repay because business is difficult. We are appealing to the President to help improve conditions for us,” trader Patience Ahorlu said.

Some traders are now looking to the government’s proposed Women’s Development Bank as a possible avenue for more affordable and flexible financing support for women-led businesses.

“The proposed Women’s Development Bank should be fast-tracked to support our businesses and help us take care of our children,” another trader appealed.

Chief Executive Officer of the Ghana Association of Savings and Loans Companies, Tweneboah Kodua Boakye, says non-bank lenders continue to play a critical role in expanding access to credit, particularly for customers who may not easily qualify for traditional bank loans.

“One of the things that you need to bear in mind has to do with… cost, risk, and also convenience. You will see that most of the customers of a non-bank, immediately they just walk into any institution, they’re able to access credit without even running an account there,” he explained.

He added that the convenience and speed associated with non-bank lending naturally come with operational costs, although many institutions are increasingly adopting technology-driven systems aimed at reducing costs and improving affordability over time.

The development underscores the broader challenge of ensuring that improving macroeconomic conditions and lower benchmark rates translate into affordable financing for businesses operating within Ghana’s vast informal economy.