Bank of Ghana’s Old Headquarters in Accra
The Ghana Association of Savings and Loans Companies (GHASALC) is pushing for greater industry recognition and policy reforms to strengthen the non-bank financial sector.
GHASALC’s call for reform comes at a time of significant expansion in the sector. As of December 2024, the total assets of savings and loans (S&L) companies stood at GH¢9.63billion – a 60.5 percent increase from approximately GH¢6billion in 2023.
The association attributed this recovery to an aggressive strategy and the sector’s role in providing financial services to small businesses and underserved communities.
Speaking at the launch of its five-year strategic plan in Accra, Chief Executive Officer (CEO) Tweneboah Kodua Boakye stressed the need for an enhanced legislative framework that better reflects the sector’s growing importance.
He cited the upcoming national budget presentation as an ideal platform for government recognition, with adoption of the revised national microfinance policy as a key step toward regulatory reform.
“We want the microfinance policy to be adopted by Cabinet, given the necessary executive backing and translated into concrete action,” he stated.
Currently, the association represents institutions that serve over seven million clients across all 16 regions of the country. Mr. Boakye was however unhappy that despite this impact, the sector remains largely overlooked in key government policy discussions.
“We believe that rebranding the sector and expanding its permissible activities will go a long way to enhance its recognition and competitiveness, locally and globally,” he contended.
The association, he added, has been advocating for implementation of the policy designed to overhaul outdated regulatory frameworks that fail to meet the needs of microfinance institutions (MFIs).
It aims to reinforce the sector’s social mandate while establishing a more effective supervisory structure.
A key demand from GHASALC is reclassification of the sector’s designation. Mr. Boakye argued that the current classification fails to reflect the industry’s financial strength and contribution to the economy.
“The current designation does not serve us well. We need the regulator to support development of the middle tier and recognise that we deserve to be called a bank, given that our balance sheets now exceed those of some banks of five or ten years ago,” Mr. Boakye emphasised.
GHASALC’s new strategic plan, which has as its theme ‘Growth Through Advocacy, Community and Ownership’, runs from 2025 to 2030.
It focuses on seven key areas: governance, advocacy, people and culture, collaboration, financial sustainability, innovation and compliance. The plan is expected to enhance the industry’s resilience and position it as a key driver of economic growth.
GHASALC remains committed to expanding financial inclusion and bridging the funding gap for MSMEs. Mr. Boakye highlighted the sector’s role in ensuring access to credit for businesses that traditional banks often overlook.
According to the association, it is seeking to “be the ultimate reference for MSME financial intermediation and empower Savings and Loans Companies to become the preferred MSME financial intermediaries”.
For its part, the Ministry of Finance reaffirmed its commitment to supporting microfinance reforms and strengthening the non-bank financial sector to drive inclusive economic growth.
Acting Head of the Financial Services Division at the Ministry, Andrew Ameckson, highlighted the critical role of microfinance institutions in financing MSMEs and the informal sector.
“It is our expectation that implementation of this strategy will reposition the savings and loans industry as a preferred option for government flagship programmes, with a focus on MSME development – including the proposed Adwuma Wura programme and other job creation and capitalisation initiatives of government,” Mr. Amerckson stated.
Mr. Ameckson – who was representing the Finance Minister, Dr. Casiel Ato Forson – assured industry players that government is working toward implementing the comprehensive microfinance policy to ensure stability and sustainability.
“We are looking at how best we can work it out; once the policy is passed, we should be able to implement it effectively,” he said, expressing optimism that the framework will be finalised within the year.
The Bank of Ghana’s Head of Banking Supervision, Osei Gyasi, called for ongoing dialogue with the savings and loans sector to ensure regulatory policies remain relevant and forward-looking.
He emphasised the importance of adaptability in a rapidly evolving financial landscape.
“The industry is evolving rapidly, so I encourage you to have periodic interactions to ensure that it is abreast with the times and even forward-looking,” Mr. Gyasi stated.