Ghana's Port Traffic Jumps 28% as Lending Rates Set to Fall Below 20%

Ghana's economic indicators show robust activity across key sectors, with significant growth in port operations, promising declines in borrowing costs, and a remarkable banking sector turnaround. These developments signal strengthening economic momentum as the nation advances its digital transformation agenda.

Container Traffic at Ghana’s Ports Surges 27.8% to Over 1.7 Million TEUs in 2024

Ghana's maritime trade witnessed impressive growth in 2024, with container traffic increasing by 27.8% to reach 1,701,246 Twenty-foot Equivalent Units (TEUs), up from 1,226,635 TEUs in 2023.

The breakdown shows:

• Tema Port: Handled over 1.6 million TEUs

• Takoradi Port: Processed approximately 32,000 TEUs

This recovery marks a significant rebound from the 2022 downturn (1,244,240 TEUs) and exceeds the peak 2021 volume of 1,562,000 TEUs. The consistent growth trajectory since 2018 demonstrates Ghana's expanding role in regional trade.

Brigadier-General Paul Seidu Tanye-Kulono, Acting Director-General of Ghana Ports and Harbours Authority, revealed that efforts to scrap taxes on goods in transit are "far advanced", a move expected to ease business costs and enhance trade competitiveness. Additionally, GPHA plans to roll out a digital platform next year to streamline port operations and reduce turnaround times.

Lending Rates Expected to Drop to Sub-20% Levels in 2025

Ghana's borrowing environment is set to improve significantly as lending rates are projected to decline from recent highs of 28% to below 20% on average in 2025.

According to Databank Research, this dovish shift will be driven by:

• Steady disinflation trending toward BoG's target band of 8% ± 200 basis points

• Potential 200 basis points rate cut in November 2025

• Easing international crude oil prices and relatively stable cedi

• Improved supply of key staples during Q3's peak harvest season

The research firm maintains a 12% ± 200 basis points inflation target, with a bias toward the lower bound of 10%. Further cuts in the benchmark rate are expected to anchor the Ghana Reference Rate below 19% by year-end, stimulating economic activity. The Composite Index of Economic Activity (CIEA) is projected to rise to 2.5% from 1.5% in 2024.

However, the Non-Performing Loan ratio is expected to see only a modest decline from 23% to 21%, as legacy high-interest loans continue to constrain repayment capacity in the near term.

ADB Records 104% Turnaround, Posts GH¢35m Net Profit in 2024

The Agriculture Development Bank (ADB) has staged a remarkable financial recovery, reporting a net profit of GH¢35.06 million in 2024—a dramatic reversal from the GH¢828.8 million loss recorded in 2023.

Key performance indicators show:

• Total assets surged by 57% from GH¢9.31 billion to GH¢14.60 billion

• Customer deposits grew by 41% from GH¢8.55 billion to GH¢12.05 billion

• Capital adequacy ratio improved though still below regulatory requirements

  
  

Despite this impressive turnaround, challenges persist. The bank's non-performing loans ratio worsened from 70.25% to 75.26%, reflecting difficulties in loan recovery and asset quality. Board Chairman Kenneth Kwamena Thompson acknowledged that "key challenges persist in areas of loan book contraction and high non-performing loans," which continue to constrain credit growth and profitability potential.

ADB remains committed to building a "resilient, future-ready institution" through innovation, digital transformation, and customer-centric solutions.

Investor's Insight – MTN Ghana Shares Hit All-Time High with 64.80% YTD Gain

MTN Ghana shares continue their exceptional performance, reaching a new all-time high with a 64.80% year-to-date gain. This sustained growth underscores investor confidence in the telecommunications sector's resilience and innovation-driven growth strategy.

The data reveals an economy building momentum across multiple fronts. The substantial growth in port traffic indicates vibrant trade activity and Ghana's strengthening position as a regional logistics hub. The anticipated decline in lending rates promises to stimulate private sector investment and economic activity.

ADB's impressive turnaround, despite its NPL challenges, demonstrates the banking sector's resilience and potential for recovery. However, the persistently high non-performing loans across the banking sector highlight the need for continued credit risk management and supportive monetary policies.

For investors, the combination of trade growth, declining borrowing costs, and banking sector recovery creates a favorable environment. MTN's continued strong performance suggests confidence in sectors leveraging digital transformation and consumer demand.

The planned port digitization and tax reforms could further enhance Ghana's competitiveness, potentially attracting more investment into logistics and related sectors. However, managing the NPL overhang remains crucial for sustaining financial sector stability and credit growth.

Stay tuned to the Cedi Board® for real-time updates on Ghana's financial pulse. From prices and policy to investment tips that help you make sense of the numbers.