Ghana’s banking sector has been ranked the most vulnerable among the top ten Sub-Saharan African economies, according to Fitch Solutions.
The country has the highest non-performing loan (NPL) ratio at 21.8% and one of the lowest capital adequacy ratios (CAR) at 14.0%, primarily due to the Domestic Debt Exchange Programme (DDEP) and persistently high interest rates.
While other SSA banks are generally more resilient, supported by strong capital buffers and stable asset quality, Ghana’s sector remains fragile.
Fitch projects interest rates in SSA will fall in 2025, which could improve loan quality.
Recent bank profits driven by high interest margins may cushion some risks, but prolonged high rates or rapid global rate cuts could destabilize the sector further.
The report warns that monetary policy uncertainty, worsened by recent U.S. tariffs, could negatively impact credit growth, loan performance, and bank revenues across the region.
