The Ghana Association of Savings and Loans Companies (GHASALC) has called on the Bank of Ghana (BoG) to reconsider the timelines for implementing its sweeping microfinance sector reforms, warning that the deadlines may be too tight for operators to realistically meet them.
The appeal follows the Central Bank’s recent rollout of a far-reaching framework that significantly raises minimum capital requirements, restructures the industry into clearer categories, and gives institutions until December 31, 2026, to fully comply.
While backing the reforms in principle, the association said the transition period requires further engagement.
Speaking to Citi Business News, Chief Executive Officer of GHASALC, Tweneboah Kodua Boakye, described the reforms as positive for regulation, customers, and long-term industry stability but stressed that the implementation timelines must be reviewed.
According to him, the association agrees with the central bank’s objective of building a more resilient financial sector and strengthening governance standards across microfinance and community banking institutions.
However, he noted that the pace at which capital requirements are expected to rise presents a major challenge for existing operators.
“It is good that the regulator increases this, but from where we sit, inasmuch as it is good, there are other things that we think we need to sit down with the regulator in the transitioning arrangement, including the length of time the regulator wants to achieve this, among other things. And we hope that when we sit with the regulator, we’ll be able to iron out all these things. But on the whole, we think it’s a good thing for the industry,” he said.
Under the new framework, a microfinance company with a current minimum paid-up capital of GH¢2 million is expected to significantly scale up its capital within a relatively short period.
Boakye argued that expecting such institutions to raise substantially higher capital within about 11 months or less is overly demanding and risks destabilising otherwise viable firms.
He stressed that while the association supports the regulator’s direction, there are critical transitional issues including timelines and operational adjustments—that must be discussed in detail with the Bank of Ghana.
According to GHASALC, it is hopeful that continued engagement with the central bank will lead to a more practical implementation roadmap that balances financial stability with industry sustainability.
The Bank of Ghana has maintained that the reforms are aimed at restoring confidence, protecting depositors, and reducing systemic risks that have plagued the sector in the past.
However, industry players are increasingly signalling that timing not intent may be the real fault line.
