Ghana’s Industrial Sector Surges 3.2% as Cedi Appreciates and Development Bank Unlocks GH¢5bn for Businesses

Ghana’s economic indicators are showing a positive trend in 2026, driven by a rebound in industrial production and a sharp appreciation of the national currency. According to the Ghana Statistical Service (GSS), the country's industrial sector saw its output growth accelerate to 3.2% year-on-year in the first quarter, a significant rise from the 1.9% recorded in the final quarter of the previous year. This growth is mirrored in the foreign exchange market, where the Ghana cedi has strengthened by approximately 4% against the US dollar over a recent two-day period, trading below the GH¢11.10 mark on the interbank market. This stability is largely attributed to a strategic $1.2 billion intervention by the Bank of Ghana aimed at managing seasonal demand and profit repatriations.

The surge in industrial performance was primarily spearheaded by the manufacturing sub-sector, which recorded a robust 6.3% growth. Key contributors to this expansion included petroleum refining, food manufacturing, and the production of non-metallic mineral products. Additionally, the mining and quarrying sector returned to positive growth at 1.1%, while electricity and gas production increased by 1.7%. However, the report highlighted challenges in the water supply, sewerage, and waste management sector, which contracted by 1.3% year-on-year. The GSS has emphasized that sustaining this momentum will require continued investment in infrastructure and productivity-enhancing measures to address the lagging sectors.

On the financial front, the cedi's appreciation has provided much-needed relief to the business community. In the interbank market, the buying and selling rates for the US dollar dropped to GH¢11.04 and GH¢11.06 respectively, down from previous levels above GH¢11.49. Similar gains were observed against the British pound and the euro. This currency rally follows the Bank of Ghana’s aggressive injection of $1.2 billion into the forex market to counteract high demand from multinational firms as they repatriate profits at the end of the quarter. While forex bureaus reported slightly higher selling rates around GH¢12.50, the overall downward trend in rates suggests a cooling of the market pressures that characterized the end of the second quarter.

Underpinning these macroeconomic shifts is the ongoing support for micro, small, and medium-sized enterprises (MSMEs) through Development Bank Ghana (DBG). DBG has facilitated approximately GH¢2.5 billion in long-term financing through 21 participating financial institutions over the last five years. This wholesale financing model is specifically designed to bypass the traditional banking preference for short-term loans, offering businesses in agriculture, ICT, and healthcare the capital needed for long-term expansion. CEO Professor Randolf Nsor-Ambala noted that the bank’s total impact, including technical assistance and ESG advisory, has reached GH¢5 billion, with a particular focus on empowering women-led and youth-led businesses.

Collectively, these developments point toward a strengthening economic framework for Ghana. The combination of targeted central bank interventions, a growing industrial base, and dedicated development financing for SMEs aligns with broader national strategies like the GhanaCARES initiative. As the country moves forward, the focus remains on ensuring that industrial growth is inclusive and that the current currency stability is maintained through prudent fiscal and monetary coordination. Continued collaboration with international financial institutions and a focus on high-growth sectors like ICT and manufacturing will be critical for long-term economic resilience.