Savings and Loans Sector Records 30.6% Growth in Total Assets as Industry Pushes for Reforms
The savings and loans sector witnessed significant growth in 2024, with total assets surging by 30.6% year-on-year (YoY) to GHS 9.63 billion, according to the Ghana Association of Savings and Loans Companies (GHASALC).
The sector’s Gross Loan Portfolio stood at GHS 6.48 billion, with the services sector maintaining its dominant position by securing the lion’s share of credit, amounting to GHS 3.59 billion.
Net loans registered a year-on-year (YoY) growth of 20.5%, rising from GHS 4.69 billion to GHS 5.65 billion, while investments also posted a modest YoY increase of 54.5% to reach GHS 1.84 billion.
Short-term funds, comprising cash and other highly liquid assets, saw a significant surge of 68.6%, increasing from GHS 421.5 million in 2023 to GHS 710.8 million in 2024—a development that points to enhanced liquidity within the sector.
Borrowings grew by 27.2% YoY, rising from GHS 1.67 billion to GHS 2.12 billion, underscoring the continued reliance on external funds to support business expansion and loan disbursements.
The sector’s net worth also witnessed remarkable improvement, increasing by 78% to GHS 439.82 million, reflecting stronger capital adequacy and improved balance sheet resilience.
On the back of enhanced customer confidence, deposit mobilisation surged by 39.4% YoY to GHS 6.10 billion, cementing the critical role of deposits as the main funding source for the industry.
Speaking at the 15th Annual General Meeting (AGM) of GHASALC, themed “Empowering MSMEs for Inclusive Growth”, Chief Executive Officer, Tweneboah Kodua Boakye, urged borrowers to maintain open communication with their financial institutions when facing challenges in loan repayments.
“We want to be very sure that you have the liquidity, you have the cash flow to pay your loan as you have promised. However, when a customer is in the process of paying the loan and he has a challenge, we encourage the customer to walk to the financial institution. Don’t wait until you have defaulted before they chase you around,” Mr Boakye stated.
He further disclosed that ongoing engagements with the Bank of Ghana (BoG) have yielded positive assurances aimed at strengthening the sector. “The governor of the Central Bank has assured us they will continue to work with us, change how they relate with us, and consider restructuring the industry, including possible changes to the industry’s name,” he added.
Mr Boakye emphasised that the sector remains committed to building local champions, expanding financial inclusion to the last mile, and leveraging technology and mobile platforms to improve service delivery.
GHASALC maintains that these positive trends position the sector to play an even more critical role in supporting micro, small and medium-sized enterprises (MSMEs) while contributing to inclusive economic growth.
