Ghana’s private sector is preparing to hit the ground running with a full resumption of economic activity from this week, marking the end of the typical lull that accompanies the end-of- year festivities.
After a fortnight of subdued business operations and lighter financial markets, firms and traders are lining up strategies to reclaim lost time and capitalise on renewed momentum in the first weeks of the new year.
The festive slowdown, deeply rooted in Ghana’s holiday culture and diaspora return, has become an annual pattern that sees formal and informal business activity dip sharply in late December and early January.
Markets, workplaces and business services often operate at reduced capacity as many staff and proprietors extend holiday breaks, return to hometowns or travel abroad a phenomenon that economists link directly to lower trade volumes and slower corporate activity over the period.
Market data for last week confirmed this seasonal slowdown. The Ghana Stock Exchange (GSE), while ending 2025 with impressive annual gains the Composite Index recorded nearly an 80% year-to-date return showed significantly lighter trading volumes in the week before New Year, with just 639,000 shares traded on December 29 and a further drop on the final trading day of the year. Total market value traded also fell, reflecting broader investor inactivity during the festive break.
The subdued pace extended to other centres of commerce as traders in key urban markets like Kumasi lamented weaker than expected Christmas sales, with many stalls reporting uncharacteristically low turnover despite heightened foot traffic associated with holiday gatherings.
Despite the seasonal soft patch, economists point to underlying signs of recovery and resilience. Late-December banking data showed private sector credit growth returning to positive territory after months of contraction, with real credit climbing steadily through October and November a sign that banks are once again willing to lend to businesses and that firms are seeking capital to invest and expand operations.
Financial markets have also reflected investor confidence. The GSE’s strong performance in 2025 positions Ghana’s equity market among the top performers in Africa, driven by gains in banking and financial services stocks, and buoyed by relative currency stability and improving macroeconomic conditions.
“It’s clear that the private sector is ready to kick off full operations,” said Kwame Ofori-Atta, a senior analyst at Accra Economics Research Institute. “The holiday period always brings a natural slowdown, but credit growth and stock market resilience show that firms are not just waiting idly they’ve been positioning themselves for a strong start to the year.”
With businesses set to return to full schedules from this week, several trends are expected to shape the first fortnight of economic activity:
Retailers and service providers are anticipating a rebound in sales as Ghanaians resume regular spending patterns post-festivities, especially in sectors like transport, hospitality and consumer goods. Companies with December year-ends will kick off financial reporting, dividend announcements and investor briefings, injecting fresh volume into equity markets. And with private sector credit growth already in positive terrain, analysts expect more borrowing for working capital and expansion projects, particularly in manufacturing and agriculture.
However, some caution that structural challenges including persistent port logistics issues and utility costs – could temper the pace of recovery if not addressed promptly by policymakers. Still, business associations are upbeat. A senior executive at the Ghana National Chamber of Commerce and Industry noted last week that “The holiday lull is a rhythm we know well. What matters is the resilience and adaptability shown by our enterprises over the past year. As we enter January, expectations are high for renewed growth, investment and job creation.”
The general sentiment among business chieftains in Ghana is that the coming fortnight will be an early test of whether seasonal optimism translates into sustained economic momentum for the start of 2026.
By Toma Imirhe
