Restructuring the country’s microfinance architecture will gather pace this year, Governor of Bank of Ghana Dr Johnson Pandit Asiama has insisted, urging commercial banks to scale up export finance as part of a broader strategy to deepen financial inclusion and strengthen foreign exchange earnings.
At the 2025 Governor’s Day organised in his honour by the Chartered Institute of Bankers’ (CIB) Ghana, he said the next phase of financial sector reform will focus on rebuilding trust at the base of the system and aligning credit intermediation more closely with the nation’s growth and export ambitions.
“Our task now is to ensure that finance works for the entire economy, not just the strongest balance sheets,” Dr. Asiama said, adding that inclusion, stability and growth “must reinforce each other, not compete”.
Resetting the microfinance architecture
At the centre of the reform agenda is a planned overhaul of the microfinance and specialised deposit-taking institutions (SDIs), a segment that has suffered reputational damage and depositor losses following years of weak governance and regulatory breaches.
Dr. Asiama said the sector’s current structure has become fragmented and unevenly supervised, undermining confidence and limiting its ability to support small businesses and households.
“We cannot build inclusion on weak foundations. Trust is the currency of finance and once it is lost, it is expensive to rebuild,” he said at the event that climaxed CIB Ghana’s calendar, which had in focus ‘Building Future-Ready Banks: Ethical Leadership, Sustainable Finance and Currency Stability Amid Disruption’.
To address this, BoG is proposing a clearer four-tier architecture comprising microfinance banks, community banks, credit unions and last-mile providers, with regulatory requirements calibrated to the risk profile and business model of each category.
“This is about proportional regulation. Different institutions play different roles in the ecosystem and supervision must reflect that reality if inclusion is to be sustainable,” the regulator said.
A key plank of the reform will be repositioning the ARB Apex Fund as a sector-wide policy and capacity-building vehicle, rather than a narrowly-defined support mechanism.
According to Dr. Asiama, this will allow the central bank to coordinate interventions more effectively, strengthen governance standards and improve operational resilience across the rural and community banking network.
The reforms are expected to be rolled out in phases, with an emphasis on depositor protection, improved disclosure and tighter oversight of governance and risk management.
This comes as the Ministry of Finance, earlier this month, confirmed that the long-awaited Microfinance Policy Framework has been forwarded to Cabinet for consideration.
The sub-sector has seen some recovery in recent years. Total assets in the Savings and Loans space grew 30.6 percent to GH¢9.63billion at end-2024 while that of the 173 regulated Microfinance institutions stood at GH¢2.51billion during the period.
The former’s non-performing loan ratio decreased from 15.5 percent in 2023 to 15 percent in 2024 and the Microfinance segment saw its NPL ratio rise to 22.1 percent during the period under consideration.
Inclusion with discipline
While reaffirming the importance of access to finance, Dr. Asiama was careful to stress that inclusion will not come at the expense of prudential discipline.
“Inclusion does not mean lowering standards. It means designing institutions and rules that allow more people to participate safely in the financial system,” he said at the event where he was conferred with an Honorary Fellowship by the Institute.
The Governor noted that weak controls, poor record-keeping and inadequate board oversight have been recurring problems in parts of the microfinance sector.
Going forward, boards and management teams will be held more directly accountable for compliance failures and operational weaknesses.
BoG’s stance is consistent with a broader shift toward outcomes-based supervision, with regulators focusing less on box-ticking and more on whether institutions are genuinely managing risks and protecting depositors, he noted.
Export finance as a strategic priority
Alongside the microfinance overhaul, the central bank is pushing banks to play a more active role in financing exports – positioning trade finance as a strategic lever for growth and foreign exchange stability.
Dr. Asiama said domestic banks must move beyond short-term intermediation and align more deliberately with the country’s export agenda.
“The banking sector cannot be passive if we are serious about exports. You must help build the pipeline of export-ready businesses,” he said.
He urged lenders to strengthen export finance desks, develop tailored products for exporters and invest in sector-specific expertise, particularly for agro-processing, manufacturing and non-traditional exports.
Risk-sharing instruments, hedging solutions and closer engagement with exporters from production through to payment were also highlighted as priorities.
“When banks support exporters, they are not taking on unnecessary risk. They are strengthening their own balance sheets while expanding Ghana’s foreign exchange base,” the Governor said.
BoG expects banks to take advantage of opportunities arising from the African Continental Free Trade Area (AfCFTA), where Ghana’s role as host offers both symbolic and commercial advantages.
Better structured trade finance, the Governor insisted, will help local firms integrate into regional value chains and compete more effectively.
Linking last-mile finance to growth
The dual focus on microfinance reform and export finance reflects BoG’s attempt to link last-mile inclusion with national growth objectives.
By strengthening community-based institutions while encouraging banks to back exporters, policymakers hope to create a more coherent financial ecosystem that supports SMEs from inception through to scale.
Dr Asiama said this approach is essential if stability achieved at the macro level is to translate into broad-based development.
“Macroeconomic stability is the foundation. But it is through inclusion and productive finance that stability delivers jobs, incomes and resilience,” he said.
A more demanding phase ahead
The impending reforms point to a more demanding phase for financial institutions, particularly those operating on the system’s margins, the Governor said.
Institutions that adapt quickly to the new architecture and strengthen governance are expected to benefit from restored confidence. Those that fail to do so may struggle to survive.
As Dr. Asiama put it: “Stability gives us the platform. What matters now is how we use it”.
On his part, Chief Executive of CIB Ghana Robert Dzato – who was among ten distinguished professionals conferred with Fellowship status at the event – said the Institute will play its part in advancing the policy agenda outlined by BoG and other key stakeholders.
“As the professional body for banking in Ghana, we have a responsibility to align capacity-building, ethical standards and leadership development with the direction set by the regulator,” he said, adding that CIB Ghana will continue to support the industry through training, certification and professional development initiatives.
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