The government is set to roll out the Microfinance Policy by the end of the year, a move expected to transform the sector and stimulate economic growth.
This was revealed by Andrew Amerckson, Head of Banking and Non-Banking at the Ministry of Finance, during the launch of a five-year strategic plan by the Ghana Association of Savings and Loans Companies (GHASALC).
Speaking on behalf of the sector minister, Ato Forson, Amerckson emphasized that the policy will serve as a roadmap for the future of Ghana’s microfinance sector.
To streamline the operations of the sector, the Ministry of Finance, in collaboration with the Central Bank and other stakeholders, has been working on the introduction of a new microfinance policy to serve as a blueprint to guide microfinance operations in Ghana. We need it to be passed because the risk there is very high,” he stated.
He further noted: “We are sure that the policy we are working on will get passed this year, but I don’t think it may need an LI, rather an Executive Instrument to get it implemented.”
Meanwhile, the Chief Executive Officer of GHASALC, Tweneboah Koduah Boakye, is urging the government to prioritize the policy in the upcoming budget, stressing that a well-structured framework will enhance access to capital for small and medium-sized enterprises (SMEs).
We want to see the microfinance policy that was developed with the help of GIZ being adopted by cabinet and also being translated into an LI. In that policy, we all agreed that the non-banked sector needs to be restructured,” he stated.
Additionally, he called for a regulatory reclassification of the sector, arguing that its current designation does not accurately reflect its financial strength and market position.
The current designation does not serve us well. We need the regulator to support the development of the middle tier and recognize that we deserve to be called a bank, given that our balance sheets now exceed those of some banks five or ten years ago,” Boakye emphasized.
The sector, which serves over 7 million customers across the country, has a cumulative asset base of GHS 9.7 billion. However, it continues to grapple with challenges, including a non-performing loan (NPL) ratio of 15%. GHASALC aims to reduce this figure to 5% as part of its long-term growth strategy.
GHASALC’s new strategic plan prioritizes expanding financing for micro, small, and medium-sized enterprises (MSMEs) and households, reinforcing the sector’s critical role in enhancing financial inclusion in Ghana.
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