The Automobile Dealers Union of Ghana (ADUG) has welcomed the government and Bank of Ghana’s decision to reduce the monetary policy rate from 28% to 25%, describing it as a “bold and strategic” step towards boosting business confidence.
In a statement issued on 31 July, the union said the move demonstrates a commitment to easing the cost of borrowing and revitalising private sector growth.
“Access to affordable credit is a lifeline for businesses — especially for our members who are actively contributing to employment creation, revenue generation, and the modernization of Ghana’s transportation sector,” the union noted.
The ADUG believes the rate cut will pave the way for lower lending rates, improved liquidity, and increased private sector investment, particularly within the automotive retail and distribution value chain. It said a strong and well-financed automotive sector could act as a catalyst for inclusive economic growth, job creation, and better mobility across the country.
The union has, however, urged financial institutions to follow the central bank’s lead by reducing lending rates and offering more flexible financing options, especially to small and medium-sized enterprises (SMEs).
“It is time for banks and lending institutions to become true partners in national development, working hand-in-hand with the business community to drive productivity and innovation,” the statement said.
