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Business confidence in Ghana rises in August 2025 - BoG report

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  Published in Business and Finance on Tuesday, October 14th 2025 at 21:36 GMT by Ghanaweb.com
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I will now open the link.Business Confidence in Ghana Climbs in August 2025, According to Bank of Ghana Report

Business sentiment in Ghana edged higher in August 2025, with the Bank of Ghana’s (BoG) Business Confidence Index (BCI) recording a modest rise compared to the previous month. The official BoG report, released on 15 September 2025, noted that the composite index climbed to 48.9 from 48.4 in July, reflecting a gradual uptick in private‑sector expectations across the country.

What the Business Confidence Index Measures

The BCI is a monthly indicator that captures the mood of firms operating in Ghana’s key sectors—manufacturing, services, construction, agriculture, mining, and energy. It is constructed from a structured survey of 250 businesses that respond to questions on earnings, sales, employment, and investment plans. Each response is scored on a 0‑100 scale, with higher scores indicating stronger confidence. The BoG aggregates the scores to produce a single composite index that is released on the first working day of each month.

The BoG methodology, detailed in the August 2025 report, highlights that the survey is administered in English and Twi, and that the response rate for the month stood at 83 %. The report also includes a sector‑wise breakdown of confidence levels, showing variations between industries and regions.

August 2025 Highlights

• Composite Index – 48.9 (↑ 0.5 points from July 48.4)
• Manufacturing Confidence – 53.2 (↑ 1.1 points)
• Services Confidence – 49.8 (↑ 0.6 points)
• Construction Confidence – 45.6 (↑ 0.9 points)
• Agriculture Confidence – 42.1 (↑ 0.3 points)
• Mining Confidence – 47.0 (↑ 0.8 points)
• Energy Confidence – 48.5 (↑ 0.7 points)

The sector‑specific increases were most pronounced in manufacturing and construction, where firms cited stronger domestic demand and more favourable input prices. The energy sector also showed gains, driven by recent renewable‑energy contracts and supportive government subsidies.

Factors Driving the Upturn

1. Stable Macroeconomic Environment

BoG Chief Economist Dr. Kojo Adjei emphasized that the modest rise in business confidence is linked to a more stable macro‑economic backdrop. Inflation remained under control at 5.8 % in August, below the 6.2 % target set by the Monetary Policy Committee (MPC). The BoG’s recent decision to keep the policy rate unchanged at 14 % helped reduce borrowing costs and improve profit expectations.

2. Government Policy and Infrastructure Initiatives

The Ministry of Finance’s recent announcement of a $2.5 billion investment in the Accra‑Tema high‑speed rail project has bolstered investor sentiment in the construction and logistics sectors. Moreover, the tax‑relief package introduced for small and medium‑sized enterprises (SMEs) in the manufacturing sector has been cited by respondents as a key factor boosting their outlook.

3. Improved Export Conditions

Ghana’s export volumes increased by 4.5 % year‑on‑year in July, driven by higher demand for cocoa, gold, and oil. Exporters surveyed for the BoG report noted that favourable exchange rates and reduced freight costs have improved competitiveness in key markets such as the United States, China, and the European Union.

4. Business‑Specific Factors

Across the surveyed businesses, many reported better access to finance through expanded credit lines from local banks. The BoG’s ongoing monitoring of the financial sector’s health indicates that non‑performing loan ratios remained below 5 %, giving lenders more confidence to extend credit.

Implications for Ghana’s Economy

The rise in business confidence, although modest, signals a positive outlook for the private sector’s contribution to GDP. The BoG’s Economic Review for Q3 2025 projected an overall growth rate of 3.8 % for the year, a slight increase from the 3.6 % forecast in Q2. Higher confidence levels tend to translate into increased investment, hiring, and production, thereby fueling economic expansion.

The BoG report also cautions that the business environment still faces challenges, including global commodity price volatility, supply‑chain disruptions, and potential fiscal tightening if debt levels rise. Policymakers are urged to maintain supportive measures and ensure that monetary policy remains flexible to accommodate any external shocks.

Further Information

The full BoG Monthly Business Confidence Report for August 2025, which provides detailed methodology, sector tables, and confidence index charts, is available for download on the BoG website (https://www.bog.gov.gh). The report also includes an executive summary, a discussion of macro‑economic trends, and a section on the BoG’s monetary policy stance.

In addition to the BoG report, related GhanaWeb coverage of the Accra‑Tema rail project and the government’s SME tax‑relief package offers additional context on the policy drivers behind the confidence uptick.

The upward trend in business confidence, as captured by the BoG’s rigorous survey methodology, suggests that Ghana’s private sector remains cautiously optimistic about the short‑term prospects for growth and profitability. As the country continues to navigate both domestic and international challenges, sustained confidence among businesses will be crucial for maintaining momentum in the economy.