Small and Medium-sized Enterprises (SMEs) continue to shoulder some of the highest borrowing costs in Ghana’s banking sector.

The development signals persistent financing challenges despite growing competition among commercial banks.

The latest Bank of Ghana Annualised Percentage Rate (APR) Report for May 2026 shows that interest rates on SME loans remain significantly higher than those offered to large corporate borrowers, reflecting the higher risk premium banks continue to attach to the sector.

According to the central bank, one-year SME loans attracted interest rates of up to 33.58%, with Guaranty Trust Bank Ghana recording the highest APR.

At the opposite end of the market, Standard Chartered Bank Ghana offered the lowest one-year SME lending rate at 11.03%, highlighting a striking disparity in borrowing costs across the industry.

For three-year SME facilities, Universal Merchant Bank posted the highest APR at 31.09%, while Stanbic Bank Ghana offered the lowest rate of 13.34%.

On five-year facilities, Agricultural Development Bank charged the highest APR of 25.07%, compared with Ecobank Ghana’s 13.97%.

The report reinforces long-standing concerns over access to affordable credit for SMEs, which account for a significant share of Ghana’s businesses, employment and economic activity.

High financing costs continue to constrain expansion, investment and job creation, even as policymakers seek to strengthen private-sector growth.

In contrast, larger corporate borrowers continued to secure substantially cheaper financing.

One-year corporate loans started from 7.62% at Absa Bank Ghana, while three-year corporate facilities were available from as low as 9.78%, reflecting the stronger credit profiles and lower perceived risk associated with established firms.

Uneven cost of credit

Across the banking sector, the average Annualised Percentage Rate stood at 17.64 percent in May, while the Ghana Reference Rate remained unchanged at 10.03%.

The Bank of Ghana notes that the APR measures the true cost of borrowing by combining the benchmark reference rate with each bank’s risk premium and other applicable lending charges.

The latest figures point to a banking sector where the cost of credit remains highly uneven.

While some lenders are offering relatively competitive financing, many small businesses continue to pay a significant premium for access to capital – a challenge that analysts say could weigh on entrepreneurship, productivity and Ghana’s broader economic growth if borrowing costs remain elevated.