Ghana’s central bank is moving to consolidate its fragmented microfinance sector by 2026, part of a strategic shift to stabilise the retail banking base while pushing commercial lenders to fund an export-led recovery.
The Bank of Ghana (BoG) plans to introduce a rigorous four-tier regulatory framework designed to flush out weak players and restore public confidence in small-scale deposit-taking institutions.
Governor Dr. Johnson Pandit Asiama signaled the move at the 2025 Governor’s Day in Accra, stating that the reforms are necessary to ensure the financial system supports broader national ambitions for foreign exchange (FX) earnings and industrial growth.
The microfinance segment, long considered the “last mile” of Ghana’s financial inclusion agenda, has struggled with a legacy of regulatory breaches and poor governance.
While the broader Savings and Loans (S&L) sector has shown signs of stability, with total assets growing 30.6 percent to GH¢9.63billion (US$837.39million) by the end of 2024, the specialised microfinance sub-sector remains under pressure.
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Non-performing loan (NPL) ratios for the 173 regulated microfinance institutions rose to 22.1 percent in 2024, a stark contrast to the S&L segment, which saw NPLs improve slightly to 15 percent from 15.5 percent. Total assets for these micro-lenders stood at GH¢2.51billion (US$218.26million) at the close of last year.
The proposed overhaul will categorise the sector into microfinance banks, community banks, credit unions, and last-mile providers.
The BoG intends to apply “proportional regulation,” meaning oversight will be strictly tied to the risk profile of each tier. Central to this plan is the repositioning of the ARB Apex Fund, which will transition from a traditional support mechanism into a policy and capacity-building vehicle to standardize operations across the rural banking network.
“We cannot build inclusion on weak foundations,” Dr. Asiama told an audience of bankers and policymakers.
“Trust is the currency of finance, and once it is lost, it is expensive to rebuild,” he added.
The export mandate
While cleaning up the microfinance sector, the central bank is simultaneously pushing Ghana’s commercial banks to become more active in trade finance.
The regulator wants banks to move away from short-term consumer intermediation and instead develop “export-ready” business pipelines.
The BoG is urging lenders to establish specialised export finance desks to support sectors such as agro-processing, manufacturing, and non-traditional exports.
By providing risk-sharing instruments and hedging solutions, the central bank believes commercial banks can help stabilise the nation’s foreign exchange base, which has faced intermittent pressure.
The timing is critical as Ghana seeks to capitalize on its role as host of the African Continental Free Trade Area (AfCFTA) Secretariat.
The BoG views structured trade finance as the primary tool to help local firms integrate into regional value chains.
Tougher oversight ahead
The 2026 roadmap signals a more aggressive supervisory stance. The Ministry of Finance has already forwarded a new Microfinance Policy Framework to Cabinet, indicating that legislative backing for the cleanup is imminent.
Dr. Asiama warned that boards and management teams would be held directly responsible for compliance failures.
The regulator is shifting toward “outcomes-based supervision,” focusing on whether institutions are genuinely managing risks rather than simply meeting procedural checklists.
“Inclusion does not mean lowering standards. Macroeconomic stability is the foundation, but it is through productive finance that stability delivers jobs and resilience,” Dr. Asiama said.
For the dozens of institutions operating at the margins, the message from the regulator is clear: adapt to the new architecture or face exit from the market.
The BoG expects the phased rollout to culminate in a leaner, more transparent system by 2026, capable of shielding depositors while funneling credit to the country’s most productive sectors.
