Collins Sefa Ghana’s Savings and Loans Sector Surpasses GH¢10.2bn in Assets, Calls for Rebranding
Ghana’s savings and loans sector continues to demonstrate impressive growth, with total assets reaching GH¢10.2 billion as of March 2025, a 30% year-on-year increase. The data was shared at the 15th Annual General Meeting (AGM) of the Ghana Association of Savings and Loans Companies (GHASALC).
Despite a drop in the Capital Adequacy Ratio (CAR) to 1.5%, which falls short of the regulatory benchmark of 10%, the sector’s performance remains strong. Notably, the Non-Performing Loans (NPL) ratio improved to 15% by March 2025, down from 18% at the end of December 2022.
Strong Growth and MSME Impact
Speaking at the AGM, GHASALC CEO Tweneboah Kodua Boakye noted the sector’s continued expansion:
“As we speak now, assets have surpassed GH¢10 billion in capacity,” he stated.
The sector saw its assets increase from GH¢7.3 billion in 2023 to GH¢9.6 billion in 2024, representing a 30.6% year-on-year growth.
In 2024 alone, member institutions:
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Disbursed 12.32 million loans valued at GH¢10.66 billion
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Served over 5 million customers
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Operated across all 16 regions of Ghana
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Provided direct employment to 6,000+ workers
These figures highlight the sector’s critical role in providing short-term, smaller loans—particularly to Micro, Small, and Medium Enterprises (MSMEs), a sector that contributes nearly 70% of GDP and 80% of employment in Ghana.
“By empowering MSMEs, we are not only driving economic growth—we are building a more inclusive, resilient, and equitable society,” Mr. Boakye said.
Call for Sector Rebranding
Despite the positive growth, Mr. Boakye criticized the current label “Savings and Loans” as outdated and not reflective of the sector’s strategic significance.
“The name ‘Savings and Loans’ is merely a product description. It does not represent our role as a second-tier banking institution,” he emphasized.
He called for a sector-wide rebranding to better position the industry between traditional commercial banks and lower-tier financial institutions like credit unions and Village Savings and Loans Associations (VSLAs). This, he argued, would help build trust, recognition, and policy support.
Financial Health of GHASALC
GHASALC itself reported a strong financial performance:
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All 26 licensed savings and loans companies remained members
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Net assets increased from GH¢417,648 to GH¢627,677
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A surplus of GH¢149,029 was recorded for the year
Board Chairman Fred Safo-Kantanka reaffirmed the Association’s commitment to its members and national development:
“MSMEs remain pivotal to economic development, job creation, and community transformation,” he said.
Strategic Partnerships and Future Plans
A notable development announced at the AGM was a new partnership with the Mohaloop Foundation to introduce an inclusive instant payment system. The platform will enable real-time interoperability between financial institutions and reduce transaction costs.
“We want our customers, the MSMEs, to do business among us seamlessly,” said Mr. Boakye, referencing successful digital finance models in Kenya and Rwanda.
The Road Ahead
While challenges in MSME financing persist, the savings and loans sector is positioning itself as a key driver of inclusive financial growth in Ghana. With growing assets, nationwide reach, and innovative partnerships, GHASALC is determined to strengthen its impact and secure a new identity that reflects its significance.
“Every thriving MSME is a step toward economic freedom, human dignity, and shared growth,” concluded Safo-Kantanka.
