Necessities for daily survival continue to dominate how Ghanaians spend their money, even as the country’s macroeconomic picture begins to brighten, according to the 2025 West Africa Banking Industry Customer Experience Survey released by KPMG. The survey shows that food, utilities, and transportation still dominate household expenses, indicating that while inflation has eased and the cedi has stabilized somewhat, financial pressure at the kitchen table level remains intense.
Food and dining sit firmly at the top of household spending, accounting for 61 percent of expenses surveyed. For many families, this is not about eating out or luxury choices, but about simply keeping meals on the table. Although food inflation has slowed compared to the peaks of recent years, prices remain high relative to incomes. A trip to the market still requires careful calculation, substitutions, and smaller portions. Households may feel relief from headline economic improvements, but their food baskets have not shrunk enough to free up money for other needs.
Utilities, including electricity, water and data, rank second at 47 percent, reflecting costs that households cannot easily escape. Lights must stay on, water must flow, and connectivity must be maintained, regardless of economic recovery. For many Ghanaians, even modest increases can upset already tight budgets. As a result, families often cut back elsewhere just to stay current on essential services. Transportation now ranks third, dropping from second place last year. This shift suggests some easing in fuel prices and commuting costs, but transport remains a major expense for workers, traders, and students.
The KPMG survey, which marks the third edition of the firm’s customer experience insights series and its sixth in Ghana, draws on insights from over 35,000 retail customers, 5,000 small and medium enterprises (SMEs), and 600 corporates across West Africa. The research was conducted during a period when macroeconomic conditions showed early signs of stabilization, yet customer behavior reflected continued caution. Trust is being earned more deliberately, and financial decisions are increasingly informed by comparison, experience, and perceived value, the report states.
Ghana’s economic recovery has been marked by significant milestones. The Ghanaian cedi emerged as the world’s best performing currency by June 2025, strengthening from 14.85 per United States (US) dollar in December 2024 to around 10.40 per US dollar mid June, representing an appreciation of roughly 30 percent. This turnaround was supported by stronger fiscal discipline, higher gold and cocoa earnings, and renewed investor confidence driven by Ghana’s International Monetary Fund (IMF) backed reform programme.
Year on year consumer inflation eased from 23.8 percent in mid 2024 to eight percent by October 2025, returning to Bank of Ghana’s target band for the first time since July 2021. In response to the sharp decline in inflation, the central bank cut its policy rate to 18 percent in November 2025, signalling confidence in price stability. Fuel prices fell by approximately 15 percent, triggering a corresponding reduction in public transport fares. The Food and Beverage Association of Ghana also reported noticeable reductions in prices of selected food items and imported commodities.
Despite these improvements, the survey reveals that discretionary spending on items such as entertainment, travel, or non essential shopping remains subdued. Families are choosing caution over consumption, saving where possible or simply managing risk in case conditions worsen again. When food, utilities, and transportation continue to dominate spending, it means families are still focused on survival, not progress, KPMG analysts noted in the report. Until incomes rise more meaningfully and essential costs fall further, Ghana’s recovery will feel real on paper but restrained in everyday life.
Generational spending patterns reveal distinct priorities. Gen Z respondents are the most food exposed, with 73 percent identifying food as their top spending category and six in ten reporting increased food expenditure over the year. Millennials’ spending is more evenly distributed across utilities at 58 percent, food at 57 percent, and family obligations at 55 percent, reflecting the pressures of household formation and dependants. Gen X respondents, often primary providers in their families, allocate significant resources to family obligations at 66 percent, utilities at 63 percent, and health and fitness at 54 percent.
Savings behavior also remains steady compared to last year. The survey findings showed that the majority of Ghanaian respondents, 31 percent, save between five and 10 percent of their income. Meanwhile, 12 percent indicated that they do not save at all, unchanged year on year, highlighting persistent financial strain for a segment of the population. Additionally, savings and investments, which ranked as the sixth largest expense area last year, moved up to fifth place this year, suggesting a gradual reprioritization as economic pressure eases.
Gen X, currently in their peak earning years, responded most positively to the improved economic environment, demonstrating a stronger commitment to savings. Many in this group allocate between 11 and 20 percent of their income to savings, reflecting both stronger earning capacity and a cautious approach to securing long term financial stability. In contrast, Millennials and Gen Z exhibit more moderate savings behavior, typically saving five to 10 percent of their income every month.
Investment behavior reflects cautious sentiment, with preferences skewed toward low and medium risk opportunities. Treasury bills remain the most preferred investment option at 25 percent, followed by fixed or term deposits at 11 percent, underscoring a strong inclination toward secure and predictable returns. This conservative approach is likely driven by residual uncertainty and a desire to preserve capital. Older respondents, particularly those aged 60 and above, favor commodities such as precious metals at 32 percent and treasury bills at 30 percent, aligning with a preference for tangible and stable assets.
Credit continues to be a critical component of financial resilience in Ghana, yet participation in the credit market remains low. This year, only 11 percent of respondents both applied for and successfully accessed a loan, while 86 percent say they did not apply at all. This trend reflects not only affordability concerns but also lingering caution and diminished trust following years of high interest rates and economic volatility. Although inflation has eased and policy rates have declined, lending rates remain elevated, and banks continue to tighten credit requirements to contain the risk of non performing loans following the shocks of the past three years.
Looking ahead, Ghana’s economy is projected to exceed 100 billion dollars in gross domestic product (GDP) for the first time by the end of 2025, positioning the country firmly on a path of sustained growth. For banking customers, this milestone could translate into more stable prices, increased job and income opportunities, and a financial sector more confident in offering new or improved products. For banks and financial service providers, the opportunity lies less in aggressive expansion and more in rebuilding confidence through simpler products, clearer credit processes, and solutions that reflect how customers are actually behaving.
The KPMG findings reveal that macroeconomic recovery does not automatically translate into household comfort. For now, most households are steadying themselves, not celebrating. While the recovery is still unfolding, the direction of travel is clear. Ghanaian consumers are moving cautiously forward, seeking stability, rebuilding savings, and relearning how to plan financially in an environment that feels less hostile than it has in years.
