BoG Reaffirms Commitment to MSME Growth, Financial Stability at GHASALC AGM
The Deputy Director of Non-Bank Financial Institutions (NBFI) at the Bank of Ghana (BoG), Desmond Agboka, has reiterated the Central Bank’s commitment to supporting micro, small and medium enterprises (MSMEs) and strengthening Ghana’s financial sector.
Delivering a speech on behalf of the Governor of the BoG, Dr. Johnson Asiama, at the 15th Annual General Meeting (AGM) of the Ghana Association of Savings and Loans Companies (GHASALC) in Accra, Mr. Agboka lauded the Association’s continued role in advancing financial inclusion, describing MSMEs as “the silent engines of job creation, innovation and grassroots development in Ghana.”
Speaking under the theme, “Empowering MSMEs for Inclusive Growth,” Mr. Agboka emphasised the need for savings and loans institutions, which serve over 5 million customers with an asset base of GHS 9.2 billion, to scale up their relevance and rebuild public trust amidst a rapidly evolving financial landscape.
“The future of Ghana’s economy is tied to the success of our MSMEs. Savings and loans institutions must return to their core mandate of mobilising small savings and providing tailored financial services to this critical sector,” he stressed.
Key Policy Interventions
Mr. Agboka outlined three key interventions by the Central Bank aimed at revitalising the sector:
Public Asset and Balance Sheet Development:
The BoG, in collaboration with the International Finance Corporation (IFC), the World Bank, and the Ghana Global Financial Infrastructure Programme, is working on a structured approach to address non-performing and toxic assets across banks and specialised deposit-taking institutions (SDIs).Financial and Liquidity Support:
The BoG is engaging the Ministry of Finance to develop a broader liquidity support framework for struggling institutions. Mr. Agboka noted that any intervention would be tied to strict accountability, transparency, and governance reforms.Regulatory Reforms and Confidence Building:
The Central Bank is committed to working with industry players to create a compliant, transparent, and resilient sector, while calling for institutions to embrace internal reforms, regulatory compliance, and enhanced stakeholder communication to restore public confidence.
Addressing Structural Challenges
Mr. Agboka identified rising non-performing loans—averaging around 15%—fragile macroeconomic conditions, and waning public trust as major headwinds facing the sector. He called for coordinated solutions involving regulators, industry leaders, and policymakers.
“The challenges are not insurmountable,” he said. “But they require vision, discipline, and innovation.”
To this end, he urged savings and loans institutions to:
Return to their original mission of serving micro-enterprises and avoiding speculative corporate lending;
Embrace digital innovation to expand access and strengthen risk management;
Prioritise sustainable capacity building, including leadership development and governance reforms.
Commitment to Financial Inclusion
The Central Bank, Mr. Agboka reaffirmed, remains steadfast in its efforts to promote financial inclusion, especially for MSMEs, through ongoing regulatory reforms, guidelines on non-performing loans, and resolvability frameworks.
“Our work determines whether a young woman with a sewing machine, a local farmer in Goaso, or a mechanic in Tamale can dream of a better future,” he remarked, urging industry players to see financial intermediation as not just a commercial transaction, but a social contract.
The BoG, he added, stands ready to collaborate with GHASALC and other stakeholders to ensure the genuine transformation of Ghana’s financial sector.
The 15th AGM of GHASALC brought together key players in Ghana’s financial sector to deliberate on strategies to strengthen the role of savings and loans companies in driving inclusive economic growth.
