The Automobile Dealers Union of Ghana (ADUG) has commended the Government of Ghana and the Bank of Ghana for what it describes as a “bold and strategic” decision to reduce the country’s monetary policy rate from 28% to 25%.
In a press release dated July 31, 2025, the Union hailed the move as a step in the right direction, especially for businesses operating in the automobile and transportation sector.
“This timely move reflects a clear commitment to easing the cost of borrowing and revitalizing business confidence across the country,” the statement said.
Describing access to affordable credit as “a lifeline for businesses,” ADUG emphasized that its members — who contribute significantly to employment creation and the modernization of Ghana’s transportation network — would greatly benefit from the reduced lending costs.
“The reduction in the policy rate is a welcomed intervention that sets the tone for lower lending rates, enhanced liquidity, and increased investment in the private sector,” the Union said.
ADUG also highlighted the importance of the automotive retail and distribution value chain to Ghana’s broader economic growth.
“This gesture by the central bank, in collaboration with the government, is a signal of hope for the business community,” the statement continued. “It is our firm belief that a well-capitalized and supported automotive sector can serve as a catalyst for inclusive economic growth, job creation, and mobility enhancement across the country.”
However, the Union did not stop at praise. It issued a firm call to financial institutions, urging them to respond to the policy shift by reducing their lending rates and offering more flexible financing options.
“We call on financial institutions to align with this policy shift by reducing their lending rates and offering flexible financing packages to businesses, especially Small and Medium-sized Enterprises (SMEs), who are the bedrock of the Ghanaian economy.”
