Microfinance policy ready for cabinet approval – MoF

The Ministry of Finance (MoF) has completed the development of a Microfinance Policy to regulate the microfinance industry as part of measures to reform the Specialised Deposit-Taking Institutions Sector.

The policy, which is to be presented to Cabinet for approval, was developed by the Ministry in collaboration with the Bank of Ghana and the Ghana Association of Microfinance Institutions (GAMFIN), with support from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

The Chief Economics Officer of MoF, Mrs Cynthiah Arthur, disclosed this in Accra during a programme marking the conclusion of support to the Private and Financial Sector (PFS) Programme. She said the policy, which is a “significant reform initiative,” establishes a coherent framework to promote sustainability, innovation, sound governance, and financial inclusion.

Launched in 2023, the PFS programme, implemented by GIZ and co-funded by the European Union, was designed to stimulate inclusive economic growth, expand access to finance, promote green and sustainable business models, improve employment opportunities for MSMEs, and strengthen framework conditions for vaccine production in Ghana.

Since its inception, the programme, covering five regions—Bono, Bono East, Ahafo, Ashanti, and Greater Accra—has reached more than 6,000 Micro, Small and Medium Enterprises (MSMEs) and contributed to the creation of over 500 jobs across various sectors.

Mrs Arthur said the new policy articulates a clear vision for the microfinance sector and establishes a dedicated governance and supervisory framework to ensure the sector functions efficiently. “It aims to enhance access to affordable and reliable financial services for low-income populations, economically active poor households, and the MSME community within a sustainable financial ecosystem,” she stated.

She commended GIZ for its support through the PFS programme, noting that the Ministry recognized the tremendous value GIZ continues to bring to Ghana’s national development efforts. Interventions under the programme have enabled MSMEs to thrive, create employment, and contribute more meaningfully to economic growth, especially in underserved regions.

Mrs Arthur urged GIZ to consider supporting a second phase of the programme, stressing that several initiatives required sustained assistance to reach their full potential.

The Head of Programme for PFS, Dr Christian Jahn, said the initiative sought to improve the employment situation of MSMEs by strengthening financial capabilities, enhancing access to finance, and promoting greener, socially responsible business models. He said the PFS supported financial services and product development for MSMEs, expanded business development services, promoted green job opportunities, strengthened employment services, and supported vaccine manufacturing initiatives.

Dr Jahn added that the project had benefited about 6,000 MSMEs and created around 550 jobs. “We supported businesses in adopting greener and more socially responsible models that combine economic opportunity with environmental and social impact,” he stated. He also noted that government agencies had adopted some projects and those requiring extension would be featured in the second phase of the programme.

The Coordinator of the Network for Inclusive Economic Development (NIED) Cluster, Mr Wilhelm Hugo, expressed gratitude to the Ministry of Finance and its regulatory partners for their leadership, collaboration, and openness to innovation.

STORIES: KINGSLEY ASARE

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