The share of the microfinance sector to the overall banking sector declined from about 15% to 8.0% between 2017 and 2024.

According to the Bank of Ghana, this decline is not merely a financial outcome, but it reflects a reduced contribution to financial inclusion and development, as well as an erosion of confidence in the sector.

It added that the sector is plagued by persistent fragmentation, weak capital bases, governance deficiencies, operational inefficiencies, high and often indiscriminate interest rates, and widespread mission drift.

“These weaknesses are particularly concerning given the deposit-taking nature of the business”, the Central Bank alluded.

It, therefore, stated that the time is ripe for proactive and deliberate measures to change course and reverse these trends.

As part of reforming the microfinance sector, the Bank of Ghana recently announced new sets of minimum capital requirements for microfinance institutions.

This was contained in a new set of guidelines for the sector, expected to take off from today, 29^th January, 2026.

According to the new guidelines, microfinance institutions, community banks and credit unions will have to increase their capital to GH¢50 million by the end of this year.