Ghana’s savings and loans sector is witnessing a resurgence in public confidence, with deposit mobilisation rising by an impressive 39.4% year-on-year to GHS 6,104.29 million in 2024. The performance highlights the sector’s expanding role in financial intermediation, particularly in supporting micro, small, and medium-sized enterprises (MSMEs).

According to the Ghana Association of Savings and Loans Companies (GHASALC), the sector’s total assets climbed by 30.6%, reaching GHS 9,632.13 million in December 2024, up from GHS 7,374.66 million in 2023.

The Gross Loan Portfolio for the year stood at GHS 6.48 million, with the services sector receiving the largest share—GHS 3,591.31 million in credit. Net loans also saw robust growth, rising 20.5% year-on-year from GHS 4,691.47 million to GHS 5,654.15 million. This signals a stronger flow of credit into productive sectors of the economy.

Borrowings increased by 27.2% over the same period, rising from GHS 1,668.21 million to GHS 2,122.60 million. This reflects the sector’s continued reliance on external funds to expand its loan portfolio.

Speaking at GHASALC’s 15th Annual General Meeting (AGM), held under the theme “Empowering MSMEs for Inclusive Growth”, CEO Tweneboah Kodua Boakye emphasised the need for borrower transparency to maintain sector stability.

“We want to be sure borrowers have the liquidity and cash flow to meet their repayment obligations. But when customers face challenges, we encourage them to approach their financial institutions early—don’t wait until you default,” Boakye advised.

He also disclosed that ongoing discussions with the Bank of Ghana (BoG) are yielding positive signals for potential regulatory changes that could redefine the identity and operational structure of the industry.

“The Governor of the Central Bank has assured us of continued collaboration, including reviewing how the Bank engages with us and potentially restructuring the industry—possibly even considering a change in its name,” Boakye revealed.

Looking ahead, GHASALC reaffirmed its commitment to deepening financial inclusion, enhancing digital service delivery, and strengthening indigenous financial institutions to reach underserved communities.

The association believes the sector’s recent performance reflects its readiness to assume a larger role in driving inclusive economic growth, particularly by scaling up support to Ghana’s vital MSME sector.