Government moves to build a more resilient financial sector as macroeconomic policy awaits Cabinet approval

Ghana is preparing a new macroeconomic policy that the government says will make the country’s financial sector stronger and better able to withstand future shocks. Finance Minister Cassiel Ato Forson said the policy had reached the final stages of Cabinet approval.

The proposal draws on the difficult lessons of Ghana’s financial sector challenges from 2017 to 2019. Those problems exposed weaknesses in governance, capitalisation, supervision and risk management, prompting calls for a stronger regulatory framework. Forson said the reforms would not simply repair past failures. They would also position the sector for sustainable growth, greater competitiveness and wider inclusion.

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Those challenges were difficult, but they also provided important lessons for all of us. They reminded us that sustainable growth can only be achieved on the foundations of strong governance, adequate capitalisation, effective oversight and robust risk management.

A major part of the plan would restructure the microfinance industry into four categories: microfinance, community finance, credit unions and large-scale providers. The government says the new structure would clarify the roles of institutions and help them serve different markets more effectively. ARESA First Bank would also receive an expanded mandate to provide dedicated central banking services, while the Bank of Ghana would continue as the sector’s sole regulator and licensor.

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A stronger, safer, more sustainable and investment-ready financial ecosystem

Forson said the reforms were being introduced as economic conditions improve, citing stronger growth, falling inflation, better investor sentiment and increased external reserves. He said stability would help financial institutions improve credit quality, attract deposits, reduce uncertainty and support sustainable lending and investment.

He also highlighted the role of savings and loans companies in serving customers who may not meet commercial banks’ traditional requirements. These institutions provide finance to farmers, traders, artisans, women-owned businesses, young entrepreneurs and micro, small and medium-sized enterprises. Forson said the reforms would create “a stronger, safer, more sustainable and investment-ready financial ecosystem” capable of supporting Ghana’s development goals.

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For the financial sector, macroeconomic stability is not merely an economic objective. It improves the operating environment for institutions, enhances credit quality, supports deposit mobilisation, reduces uncertainty and creates conditions for sustainable lending and investment.