Bayport CEO Hails Fiscal Discipline as Key to Unlocking Private Sector Growth
The Chief Executive Officer of Bayport Savings and Loans has credited the government’s prudent fiscal management for creating the right conditions for private sector-led growth, stressing that disciplined borrowing is freeing up capital for businesses and households.
Speaking at the Facts Behind the Figures series organised by the Ghana Stock Exchange, the CEO noted that Bayport has reaped significant benefits from the government’s cautious approach to Treasury bill auctions. By rejecting high bids and curbing excessive borrowing, he explained, the government is reducing crowding out of the private sector and ensuring that banks and non-bank financial institutions have access to cheaper funds.
“This discipline has made a lot more liquidity available in the system, and we have tapped into it. As a result, we have more than doubled our deposit base compared to last year,” he said.
The CEO revealed that this improved funding environment has enabled Bayport to slash its lending rates by nearly 6 percent, directly easing the cost of credit for public sector workers who form its core clientele. He added that the move is already making loans more affordable, enhancing financial inclusion and giving workers the flexibility to invest in personal and family needs.
The positive impact of fiscal prudence extends beyond credit availability. With the cedi stabilising and inflation easing, Bayport says its operational costs—particularly in technology deployment—have declined. “With the dollar moving from the 15s into the 10s, our technology expenses have dropped considerably. That means we can reinvest savings into customer-focused innovations,” he said.
His comments echo sentiments shared by the Governor of the Bank of Ghana, Dr Ernest Addison, who recently told banks at a post-MPC engagement that “business and consumer confidence has strengthened, buoyed by easing inflationary pressures and a stable cedi.” According to the Governor, these improved sentiments are critical as they drive investment decisions, credit uptake, and the willingness of households and firms to take calculated risks that propel growth.
Available Bank of Ghana data also shows that credit to the private sector is improving, supported by government’s expenditure rationalisation and fiscal consolidation efforts. Analysts believe this is reshaping the lending environment, reducing the dominance of government securities in banks’ portfolios, and encouraging financial institutions to channel more resources to SMEs and other productive sectors.
For Bayport, the outcome has been clear. “In life, there’s something called opportunity meeting readiness—and we were ready. Government’s discipline at the macro level has created an environment that benefits us, our customers, and the wider economy,” the CEO concluded.
