News Guide Africa

Tag: Bank of Ghana (BoG)

Catholic expert’s appointment to NIB Advisory Council crushes ‘Islamisation’ fears

By Adnan Adams Mohammed

In a historic move that signals the imminent launch of Ghana’s first fully licensed Non-Interest Banking (NIB) institution, the Bank of Ghana (BoG) has announced the appointment of two prominent industry experts to the Non-Interest Financial Advisory Council (NIFAC).

Crucially, the consideration of a devout Catholic to the apex advisory council has effectively diffused long-standing public misconceptions that non-interest banking, often associated with Islamic finance principles, is an attempt to secretly “Islamise” the nation’s financial system.

The yet to be fully constituted NIFAC is tasked with reviewing and approving the first suite of financial products to be rolled out by incoming institutions, ensuring strict compliance with non-interest banking (NIB) principles before they hit the commercial market.

Bridging the Faith Divide

For years, the introduction of non-interest or ethical banking sparked quiet apprehension among segments of the public who viewed it strictly through a religious lens. However, the central bank’s decision to appoint a high-profile Catholic finance expert to NIFAC has completely shifted the narrative toward financial inclusion rather than religious dominance.

Speaking on the condition of anonymity shortly after appointment letters were dispatched, the Catholic council member expressed deep optimism about the sector’s secular benefits.

“When I was approached for this role, I saw it not as a religious calling, but as an economic duty,” he stated. “Non-interest banking is built on ethics, risk-sharing, and asset-backed transactions. As a Catholic, these values of fairness and community empowerment resonate deeply with my own faith. This is about giving Ghanaians more options, not changing their religion.”

The expert further addressed the lingering myths surrounding the financial framework.

“There has been a persistent misconception that introducing these frameworks is a backdoor strategy for ‘Islamisation.’ That narrative is entirely unfounded. If a Catholic can sit at the highest advisory level to regulate these products, it proves that this is a universal, ethical economic tool designed for all Ghanaians, regardless of their creed.”

BoG Fast-Tracks First License

The appointments come on the heels of the Bank of Ghana finalizing its review of application documents submitted by some institutions for ‘Window’ license. Insiders within the central bank confirm that with NIFAC being set up and to be launched soon, the apex bank is on the verge of issuing its very first independent non-interest banking license in earnest.

Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, has previously emphasized that the framework is meant to expand financial access to underserved populations, particularly small-to-medium enterprises (SMEs) that struggle with conventional high-interest loans.

“Our objective is to create an all-inclusive financial ecosystem,” the Governor remarked. “By bringing in a diverse stock of top-tier experts, we ensure robust regulatory oversight. This council will guarantee that these new products strictly protect consumer interests while driving national economic growth.”

Industry Applauds the Move

Financial analysts and religious leaders alike have praised the central bank’s inclusive approach to composing the advisory council. Banking consultant Kwame Mensah noted that diversifying the council is a masterstroke in public relations and regulatory policy.

“The central bank has handled this brilliantly,” Mensah said. “By ensuring the council isn’t monolithic, they have effectively decoupled the financial utility of non-interest banking from religious politics. It sends a clear message to investors and consumers that this is purely business, equity, and asset-based development.”

As the newly appointed experts assume their roles, the testing of system compliance is entering its final stages. With the regulatory roadblocks cleared and the “Islamisation” myth successfully debunked, Ghanaians can expect the launch of the country’s premier non-interest bank in the coming months, ushering in a new era of competitive, interest-free financial alternatives.

May 30, 2026
BoG rejects artificial market intervention …focuses on reserve accumulation to anchor cedi and check volatility

The Bank of Ghana (BoG) has firmly ruled out executing artificial or heavy-handed interventions in the foreign exchange market to manage recent demand pressures on the local currency.

Instead, the regulator assured that its policy focus remains squarely fixed on aggressive reserve accumulation and structural market stability to cushion the cedi against global shocks.

The central bank confirmed that while the cedi has experienced localized pressures, its core strategy relies on allowing a flexible exchange rate regime to absorb external volatility naturally. Policy coordinators emphasized that the bank’s key priority is to prevent excessive, speculative fluctuations rather than trying to force an artificial value on the market.

Reserves over artificial interventions

Addressing the press following the conclusion of the 130th Monetary Policy Committee (MPC) meetings in Accra, Bank of Ghana Governor Dr. Johnson Pandit Asiama explained that modern market fundamentals, rather than ad-hoc dollar injections, must dictate the local currency’s path.

“We are not intervening in the market in a manner that distorts the exchange rate. What we are doing is building reserves and strengthening buffers for the economy,” Dr. Asiama declared. “The relative stability of the cedi in recent months has largely been driven by improved market fundamentals, stronger inflows, and growing investor confidence. The reserve accumulation programme is progressing well, and this is providing confidence to the market.”

The Governor explained that attempting to defend the currency through continuous, artificial market injections is a short-term approach that drains vital national resources.

“Our objective is to ensure long-term macroeconomic stability and avoid a return to the era of sustained currency depreciation,” Dr. Asiama stressed. “Global uncertainties, particularly tensions in the Middle East and fluctuations in commodity prices, continue to pose risks to emerging market currencies, including the cedi. However, Ghana’s improving macroeconomic indicators and stronger foreign reserve position are helping to cushion the economy against these external pressures.”

Embracing a flexible exchange rate strategy

Reinforcing the Governor’s stance, senior technical directors within the central bank’s monetary operations department noted that a flexible exchange rate mechanism remains the country’s primary defense against global financial imbalances.

Officials explained that allowing the cedi to adjust dynamically ensures that domestic industries remain globally competitive while discouraging speculative hoarding by retail actors.

“A flexible exchange rate regime is absolutely critical in absorbing external shocks,” a first deputy governor at the central bank observed during market briefings. “When external cost-push pressures or geopolitical disruptions occur, a rigid exchange rate can mask the economic reality and lead to sudden, severe structural breaks. By allowing the currency to reflect authentic demand and supply dynamics, the economy adjusts more smoothly, ensuring long-term fiscal predictability.”

Mitigating speculation and avoiding excessive volatility

Despite backing a flexible framework, the central bank clarified that it will maintain a highly active supervisory eye on commercial banking treasury desks to prevent predatory trading and speculative distortions.

Treasury operators note that while normal commercial demand from bulk distribution companies and manufacturing importers is expected, the regulator is moving swiftly to eliminate panic-buying behavior.

“Our primary concern at this stage is to avoid excessive volatility that is not supported by real economic data,” a senior central bank market specialist remarked. “We understand that corporate operators require foreign exchange for their forward planning, and the market has sufficient liquidity to support those legitimate transactions. What we are actively working against are speculative spikes driven by sentiment rather than actual trade requirements. We have the necessary mechanisms to smooth out temporary imbalances without altering the natural trend of the market.”

With state gold-purchase programs continuing to actively bolster the central bank’s monetary gold reserves, financial analysts in Accra express confidence that the regulator’s current strategy will successfully steer the cedi through mid-year import cycles while avoiding severe inflationary pass-through effects.

May 26, 2026
BoG rallies for unified financial markets to fuel digital future …as Africa economy tipped to maintain steady growth through 2028

By Adnan Adams Mohammed

Emerging from a series of global macroeconomic shocks, the African continent is projected to maintain a resilient and steady economic growth trajectory from 2026 through 2028.

The bullish medium-term forecast, published by international financial advisory firm Bridgewater Advisors, highlights a structural turnaround across sub-Saharan economies driven by robust domestic reforms, stabilizing currencies, and expanding service sectors.

The multi-year growth projection has injected fresh momentum into the African policy space.

Opening the prestigious Global Markets Congress in Accra, Bank of Ghana Governor Dr. Johnson Pandit Asiama declared that capitalizing on this growth window requires a radical departure from fragmented national financial architectures. He rallied central banks and finance leaders to urgently establish connected African financial markets to unlock capital mobility and power long-term industrialization.

Capitalizing on the three-year growth window

The Bridgewater Advisors data indicates that Africa’s projected growth trajectory offers a critical window of opportunity for regional governments to finalize structural transitions. However, analysts warn that this baseline growth cannot achieve its full potential without deep cross-border financial integration.

Addressing international delegates and global market operators, Governor Dr. Johnson Pandit Asiama outlined a strategic vision to establish Accra as the primary capital and financial hub of West Africa.

“According to the latest indicators, Africa is set to maintain steady growth over the next three years,” Dr. Asiama noted during his opening address at the congress. “But to translate these macroeconomic projections into sustainable development, we must proactively integrate our capital markets. The Bank of Ghana is pushing aggressively for highly connected African financial markets. We must dismantle the regulatory silos that make it easier to export African capital to western capitals than to invest it in our neighboring states.”

The Governor explained that a connected financial grid would allow local institutional investors, such as pension funds and sovereign wealth managers, to seamlessly back large-scale cross-border infrastructure.

“A fragmented market limits liquidity and increases risks for investors,” Dr. Asiama added. “By harmonizing our trading systems, payment infrastructures, and regulatory frameworks, we create a deeper, highly liquid marketplace capable of absorbing billions in investment and providing the long-term credit our private sector desperately needs.”

Redirecting Africa’s wealth into digital public infrastructure

The call for structural market integration aligns closely with emerging consensus from the recently concluded Forward Africa Leaders Continental Summit in Kigali, Rwanda. Speaking on the sidelines of regional trade dialogues, prominent private sector leaders argued that the continent’s financial modernization must move beyond basic banking to fund advanced technical sovereignty.

Alex Appau Daddey, the Executive Chairman of the KGL Group and Co-Chair of the Forward Africa Leaders Summit Governing Council, emphasized that Africa’s primary economic challenge is not an absolute scarcity of capital, but rather the structural direction of that capital.

“Africa’s capital must power African digital innovation and infrastructure,” Daddey declared. “Capital flows naturally where incentives, regulatory certainty, and clear commercial opportunities are aligned. There must be an absolute alignment between government policy, private sector leadership, and financial institution support. We must deliberately structure our domestic markets to make it far more attractive to invest in African digital infrastructure than to export African capital.”

Daddey pointed out that in an era increasingly dominated by advanced automated networks and artificial intelligence, nations that do not control their digital public infrastructure will forfeit their economic independence.

“We recognize that African companies must move beyond simply participating in global markets; we must actively shape them,” Daddey added. “Through strategic investments in digital finance ecosystems, modern e-governance solutions, and sovereign data systems, we can modernize public revenue streams and build the structural resilience required for the next development decade.”

Building the interoperable frontier

To bridge the gap between private tech ambitions and central bank oversight, regulatory bodies under the African Continental Free Trade Area (AfCFTA) are moving to scale up interoperable payment channels. Trade experts observe that the Pan-African Payment and Settlement System (PAPSS) is already serving as a primary pilot for the connected financial markets championed by the Bank of Ghana.

As Accra positions itself to anchor these emerging financial networks, the combination of steady medium-term growth projections, proactive regulatory harmonization, and localized private capital deployment is seen as a timely formula to insulate the continent against future global recessions while retaining African wealth to power African industries.

May 26, 2026
BoG orders banks to chase defaulters on ‘written-off loans’ …to avoid ‘moral hazard’

By Adnan Adams Mohammed

The Bank of Ghana (BoG) has directed commercial banks to aggressively pursue borrowers of fully provisioned loans, warning that completely erasing bad debts from their books without recovery efforts creates a dangerous “moral hazard” in the financial sector.

Central Bank Governor Dr. Johnson Pandit Asiama issued the directive during a Monetary Policy Committee (MPC) press briefing. He revealed that while Ghana’s gross Non-Performing Loan (NPL) ratio remains elevated at just under 20%, the true underlying risk exposure drops significantly to around 8% when fully provisioned bad debts are accounted for.

The Governor’s remarks were in response to a question as to whether the stubborn NPL levels were a legacy effect of the country’s domestic debt exchange programme, and what regulatory sanctions it would deploy against banks failing to clean up their balance sheets.

The problem with “just erasing” bad debt

Addressing the calls for banks to simply wipe out these long-standing bad loans to make their books look cleaner, Dr. Asiama explained that a rapid write-off policy sends the wrong message to borrowers.

“Your question would be, why don’t we just erase the fully provisioned loans?” Dr. Asiama stated. “We don’t just erase them because there’s something called a moral hazard. If you just erase them, you could be raising moral hazard issues out there.”

The Governor explained that forgiving or quietly erasing debt relieves the pressure on defaulting borrowers, which could encourage reckless borrowing behavior across the wider economy.

Actively hunting defaulters

To ensure financial discipline is maintained, the central bank expects commercial banks to keep debt collection units active, even for loans that have technically been accounted for as losses.

“We still urge the commercial banks to pursue the beneficiaries of those loans, and as much as possible to collect, even though they may have written off fully those loans,” Dr. Asiama asserted. “They go after them and collect as much as they can.”

Countdown to the 2026 deadline

The central bank has already set wheels in motion to force compliance. The BoG has issued a series of strict guidelines to local banks, establishing a hard deadline at the end of 2026 for institutions to drastically reduce their toxic loan portfolios.

According to earlier regulatory directives, the BoG is aiming to push the industry’s benchmark NPL ratio down below a 10% threshold by the time the enforcement window closes.

Dr. Asiama noted that a collaborative framework is already yielding results, expressing confidence that the industry’s balance sheets will undergo a major transformation over the coming months.

“There’s a programme in place. We are working together with the banks to make sure we reduce that stock,” the Governor concluded. “Once we reduce them, we’ll see even the gross NPL ratio declining significantly. So far, there’s been a lot of progress made. We’ll build on that.”

May 25, 2026
Oversubscriptions resume in Ghana’s T-Bill market

By Toma Imirhe

Even ahead of last week’s decision by the Bank of Ghana’s Monetary Policy Committee not to cut the benchmark Monetary Policy Rate any further from the 14% set in March, investor appetite for Government of Ghana treasury bills appears to have rebounded sharply over the past few weeks. With treasury bill yields unlikely to fall further over the coming weeks, this is putting paid to the erstwhile stretch of weak auctions that had raised concerns over the state’s short-term financing programme and the sustainability of declining yields in the domestic debt market.

Auction results released by the Bank of Ghana show that the May 8 and May 15, 2026 auctions were both oversubscribed, marking a turnaround from the under-subscriptions and sizeable bid rejections that characterised much of April.

According to auction data, the May 8 sale recorded total bids of nearly GH¢7.8 billion against a target of about GHc4.3 billion, representing an oversubscription of roughly 80%. The 91-day bill dominated demand with GHc5.72 billion in bids, of which GHc4.37 billion was accepted. The 182-day bill attracted GHc650 million in bids, with GHc570 million accepted, while the 364-day bill received GHc1.46 billion worth of bids, out of which GHc1.14 billion was taken up.

The subsequent May 15 auction sustained the renewed momentum, with investors continuing to pile into the short end of the yield curve despite moderating interest rates. The total amount tendered was GHc5.80 billion against a target of GHc4.30 billion resulting in a 34.8% oversubscription, with the government accepting GHc5.48 billion worth of bids. For 91 day bills GHc3.83 billion was tendered and GHc3.65 billion was accepted. For 182 day bills, GHc709.83 million was tendered and GHc671.72 million was accepted. For 364 day bills, GHc1.26 billion was tendered, and GHc1.15 billion was accepted.

Analysts say the reversal reflects a combination of improving macroeconomic sentiment, excess banking sector liquidity and rising caution among institutional investors regarding longer-dated government securities being traded on the Ghana Fixed Income Market’s secondary market.

“The market is gradually regaining confidence in government paper after the uncertainty created by the domestic debt restructuring exercise,” said a fixed income dealer at a leading Accra-based investment bank last week. “Most investors are still unwilling to lock funds into long-dated bonds, so treasury bills remain the preferred safe haven.”

The dominance of the 91-day instrument remains striking. In both the May 8 and 15 auctions, the shortest tenor accounted for well over 70 percent of total bids submitted. Analysts attribute this preference to lingering investor caution after the Domestic Debt Exchange Programme (DDEP), under which holders of medium and long-term bonds suffered maturity extensions and coupon reductions.

Although treasury bills were exempted from the DDEP, investors remain wary of duration risk and prefer instruments that mature quickly and can be rolled over frequently.

“The preference for the short end is rational,” noted an Accra-based treasury manager at the weekend. “Investors want liquidity, flexibility and minimal exposure to future policy uncertainty. The 91-day bill offers all three.”

Recent auction data show yields stabilising at much lower levels than those prevailing earlier in the year.

The rally in treasury bill demand follows Ghana’s improving macroeconomic outlook under the International Monetary Fund-supported reform programme that the country exited two weekends ago. The recent upgrade of Ghana’s sovereign credit rating by Fitch Ratings to B with a positive outlook has further boosted investor confidence in government securities.

Finance Minister Cassiel Ato Forson has repeatedly argued that the government’s fiscal consolidation programme is beginning to yield results, citing stronger revenue mobilisation, the sharp decline in inflation and improved exchange rates.

At the same time, liquidity conditions within the banking sector remain elevated. Many banks and institutional investors have accumulated sizeable cedi balances amid relatively weak private sector credit demand for viable uses, forcing them back into government securities despite lower yields.

This excess liquidity partly explains why government has increasingly been able to reject bids aggressively in recent months while still meeting its financing requirements. Between January and April 2026, government reportedly mobilised about GH¢120.2 billion from the treasury bill market against bids worth more than GH¢181 billion submitted by investors.

Indeed, some analysts argue that the earlier under-subscriptions witnessed in April were not entirely demand-driven but also reflected strategic bid rejections by the Treasury as it sought to force yields lower.

“The government deliberately became selective about the rates it was willing to accept,” says one market analyst. “That initially discouraged some investors, but the market has now adjusted to the new yield environment.”

The current structure of demand also highlights persistent segmentation within Ghana’s domestic debt market. While treasury bills continue attracting strong interest, appetite for medium and long-term bonds remains subdued, forcing government to rely heavily on short-term borrowing.

That strategy carries refinancing risks because large volumes of debt mature every few months. However, analysts say the Treasury currently prefers the flexibility of short-term financing while waiting for confidence in the long end of the market to recover.

Over the next two to three months, market watchers expect treasury bill issuance volumes to remain elevated as government continues refinancing maturing obligations and funding budget operations. However, most analysts forecast that oversubscriptions are likely to persist, especially for the 91-day tenor.

Short-term rates could trend gradually lower if inflation continues easing and the cedi remains relatively stable, although neither of those are a given, due to the global price shocks currently being experienced by Ghana that are emanating from unresolved tensions in the Persian Gulf – and which have persuaded the BoG to pause the monetary easing it began in July 2025..

Current market expectations suggest the 91-day bill’s yield could still possibly decline marginally over the next couple of months if oversubscriptions persist, although the 182-day and 364-day instruments may remain relatively sticky because investors will continue demanding a premium for longer maturities.

The outlook will nevertheless depend heavily on fiscal discipline by government and monetary policy decisions by the Bank of Ghana. Any renewed exchange rate pressure, acceleration in inflation or deterioration in government financing conditions could quickly reverse the recent decline in yields.

For now, however, Ghana’s treasury bill market appears to have regained momentum after several uncertain weeks, offering government a critical source of domestic financing having exited its three-year IMF programme

May 25, 2026
Lending, deposit rates to remain unchanged …as BoG maintains 14% policy rate for next 2 months

By Toma Imirhe

The Bank of Ghana has put its aggressive monetary easing cycle on hold, with its Monetary Policy Committee (MPC) deciding last week to maintain the benchmark Monetary Policy Rate (MPR) at 14% for the next two months, after cumulative cuts of 1,400 basis points since July 2025.

The decision, announced at the end of the MPC’s 130th regular meeting in Accra, signals growing caution by the central bank despite Ghana’s improving macroeconomic indicators, subdued inflationary pressures and relative exchange rate stability.

Governor Johnson Pandit Asiama said the MPC judged risks to inflation and growth as “broadly balanced,” but external uncertainties particularly escalating tensions in the Middle East and their impact on global crude oil prices had become too significant to ignore.

“The committee evaluated other forms of risks…but the elephant in the room here is the Middle East crisis,” Dr Asiama said during the post-MPC press briefing. “Up to this time, one is not sure whether it is temporary or whether it is going to be long-lasting.”

The MPC’s decision effectively interrupts the sharpest monetary easing cycle in Ghana’s recent history. Since July 2025, the central bank has lowered the policy rate from 28% to 14% as inflation slowed dramatically, the cedi stabilised and fiscal consolidation under Ghana’s IMF-supported programme improved investor confidence.

The last reduction came in March 2026, when the MPC cut the rate by 150 basis points from 15.5% to 14%.

Consequent to the MPC’s cautious decision last week, commercial bank lending rates, which had begun trending downward following the successive policy rate cuts, are now expected to stabilise rather than decline further in the short term. Analysts say banks are likely to maintain relatively elevated lending margins because of lingering credit risk concerns and uncertainty over future inflation trends.

Dr Asiama himself acknowledged that monetary policy easing often takes time to transmit fully into commercial lending rates, explaining that “although rates are falling, it may take a while. You don’t just rush into giving loans. There has to be adequate bankable projects and you don’t compromise your credit appraisal standards,” he noted.

As a result, top-tier corporate borrowers may continue accessing cedi-denominated bank credit at rates between 18% and 24%, while medium-sized enterprises are likely to face rates ranging from 25% to 35% depending on sectoral risk and collateral quality, according to treasury market analysts.

For households and individuals, unsecured consumer loans and credit facilities are expected to remain relatively expensive, often above 30% annually despite the sharp reduction in the benchmark rate over the past year.

Non-bank financial institutions, including savings and loans companies and finance houses, are also expected to keep lending rates relatively high because of their elevated funding costs and weaker access to low-cost deposits compared with universal banks.

On the fixed income market, the MPC’s decision is likely to reinforce the recent stabilisation in yields after months of steep declines.

Treasury bill yields have fallen sharply since late 2025, reflecting improving macroeconomic stability and strong liquidity conditions. However, investors have recently shown greater caution amid uncertainty over global inflation and oil prices.

Fixed income dealers say the decision to hold the MPR at 14% could anchor short-term treasury bill rates near current levels rather than allow them to decline much further before the next MPC meeting in July.

Investors are also expected to continue preferring shorter-dated instruments such as the 91-day and 182-day Treasury bills over longer-term bonds because of uncertainty about the future direction of inflation and interest rates.

Longer-term domestic bonds, meanwhile, may see yields stabilise or even edge slightly upward as investors price in inflation risk premiums linked to higher global energy prices.

For the government, the MPC’s cautious stance means domestic borrowing costs may not decline as rapidly as the Finance Ministry had hoped. Nonetheless, current rates are dramatically lower than the crisis-era levels recorded in 2023 and early 2024.

The decision to pause the successive series of cuts in the MPR resulted from the marginal rise in headline inflation in April 2026 to 3.4 percent from 3.2 percent in March the first increase since late 2024 driven partly by higher non-food prices and exchange rate-related base effects. At the same time, renewed instability in the Middle East has pushed global crude oil prices sharply upward, reviving fears of imported inflation.

The Bank of Ghana is particularly concerned that sustained higher oil prices could trigger second-round inflation effects through transport fares, utility tariffs and production costs.

Dr Asiama warned that a prolonged disruption to global energy markets could reverse recent gains in inflation control.

“The disruption to trade flows following the blockade of the Strait of Hormuz has led to a sharp increase in international crude oil prices and reignited inflationary pressures,” he said.

Financial market participants broadly welcomed the MPC’s decision, arguing that preserving macroeconomic stability remains more important than accelerating monetary easing.

The central bank also announced additional liquidity tightening measures alongside the rate decision, including a revision to the dynamic cash reserve ratio framework requiring banks to maintain a uniform 20 percent reserve requirement in domestic currency from June 4.

Analysts believe the move is intended to strengthen monetary policy transmission and mop up excess liquidity that could otherwise fuel speculative activity in foreign exchange and government securities markets.

Despite the pause in rate cuts, the MPC maintained a cautiously optimistic assessment of Ghana’s economy, noting continued growth in private sector activity, industrial production and trade.

The Bank’s Composite Index of Economic Activity expanded by 12.6 percent year-on-year in March 2026, compared with 2.3 percent during the same period last year.

May 25, 2026
MoMo transactions hit GH¢493.2 billion as BoG and agents push for safety amid aggressive expansion

By Adnan Adams Mohammed

Ghana’s digital financial ecosystem has shattered previous records, with mobile money (MoMo) transaction values soaring to an unprecedented GH¢493.2 billion.

The staggering figure represents a massive 35 percent year-on-year surge in transaction volumes, cementing mobile money as the undisputed engine of financial intermediation and inclusion across the country.

However, this exponential boom has triggered an aggressive regulatory and operational counter-response. As the volume of electronic capital floating through digital channels scales up, the Bank of Ghana (BoG), major fintech infrastructure giants, and grassroots merchant groups are taking drastically stricter stances to ensure that rapid technological innovation does not compromise national financial security.

Central bank demands “responsibility first”

Addressing a forum of digital finance innovators, central bank executives made it explicitly clear that the regulator will no longer tolerate loosely monitored systems that give room to cybercriminals. Bank of Ghana Governor Dr. Johnson Pandit Asiama urged fintech firms to look beyond profit margins and aggressively pair their market innovations with strict structural compliance.

“The scale of transaction flows we are witnessing, crossing the GH¢490 billion mark, demands an equivalent level of institutional maturity,” the central bank chief stated. “We expect our fintech partners to innovate, but that innovation must go hand-in-hand with absolute responsibility. The central bank will not hesitate to enforce punitive measures against any platform that treats Know Your Customer (KYC) compliance and fraud mitigation protocols as an afterthought.”

The hammer falls: Mass suspensions for delinquent agents

Translating the central bank’s warning into immediate operational action, leading fintech and mobile money service providers have aggressively tightened compliance frameworks across the country. Over the past weeks, service operators have initiated widespread compliance sweeps, leading to the temporary suspension and outright termination of thousands of agent accounts.

The crackdown targets merchant points that have failed to update their official business identification, those operating with unverified biometric data, and lines flagged for suspicious transaction patterns.

“The security of the digital wallet is sacrosanct,” a senior compliance executive at Mobile Money Fintech Limited remarked following the enforcement wave. “We are cleansing our merchant database to lock out fraudsters who exploit loose ends. If an agent account cannot be mapped to a verifiable physical location or a valid national identification, that account faces immediate suspension or complete termination. There are no compromises when it comes to safeguarding consumer funds.”

Security guarantees demanded for 24-Hour economy integration

While the state pushes to integrate the massive mobile money infrastructure into its flagship “24-Hour Economy Initiative” designed to transition Ghanaian commerce into an all-day, all-night operational cycle on-the-ground operators are raising serious safety concerns.

The Mobile Money Agents Association of Ghana (MMAAG) has thrown its support behind the 24-hour commerce vision but has issued an ultimatum to state security agencies. The association demands immediate, concrete security measures to protect its members before they can fully participate in late-night or overnight trading blocks.

Speaking on the unique risks faced by roadside merchants, Evans Otumfuo, the General Secretary of MMAAG, explained that expanding operating hours into the night without tactical police protection is a recipe for disaster.

“We represent the frontline soldiers of this GH¢493 billion digital economy, and our lives cannot be put at risk,” Otumfuo declared. “MMAAG is fully ready to deploy our networks to sustain a 24-hour transaction cycle, but the government must first assure us of security. We are demanding targeted night patrols, improved street lighting in commercial zones, and dedicated emergency response channels for our members. Until these security measures are visibly on the ground, we cannot ask our agents to risk their lives operating in the dark.”

With transaction volumes showing no signs of slowing down, the future of Ghana’s digital economy will depend heavily on whether policy coordinators, law enforcement, and major telecom platforms can build a protective framework that matches the rapid pace of financial innovation.

May 25, 2026
BoG set to license first Non-Interest Bank soon …as two industry experts are appointed to NIFAC

By Adnan Adams Mohammed

The Bank of Ghana (BoG) is set to issue its first operational license for a non-interest banking institution before the end of 2026.

The milestone follows a rigorous regulatory process designed to seamlessly weave alternative finance into the nation’s existing financial architecture.

Central bank Governor Dr. Johnson Pandit Asiama revealed the timeline during the central bank’s Monetary Policy Committee (MPC) press briefing last week. Responding to a question regarding how the new framework would deepen local financial inclusion and blend into Ghana’s liquidity management framework, Dr. Asiama expressed immense optimism.

“That is something that is dear to my heart,” Dr. Asiama stated. “We are all waiting to see the launch of the first non-interest banking institution. A lot has been done… Hopefully this year we will see the first license.”

Rigorous regulatory oversight

While the introduction of non-interest banking is widely anticipated to absorb a large segment of Ghana’s unbanked population, particularly businesses and individuals seeking ethical alternatives, the apex bank is taking no shortcuts regarding regulatory oversight.

Dr. Asiama assured the public that incoming institutions are undergoing intense scrutiny to guarantee macroeconomic stability.

“They are working very hard, putting in place the structures. The regulatory structures are very, very stringent, I can assure you. This is best practice. So I have no fears about that at all,” the Governor explained.

NIFAC formed to guide governance

Crucial to the operationalization of Non-Interest Banks (NIBs) is the official formation of the Non-Interest Financial Advisory Council (NIFAC). The council is tasked with providing expert, high-level advice on governance and compliance directly to the Bank of Ghana.

In alignment with the central bank’s strict adherence to inclusive corporate governance, information this paper is privy to tells that, two highly respected financial professionals have been appointed to serve as NIFAC members

Appointed NIFAC Member Professional Background Key Specialization

Dr. George Baah-Danquah Fellow, ICAG & CICT; Banking & Treasury Expert Treasury Management, Corporate Governance, Corporate Banking

Adishetu Hamidu Naabo Principal Economic Officer, Ministry of Finance Fiscal Policy, Non-Interest Financial Frameworks, Public Finance

Dr. George Baah-Danquah, a fellow of the Institute of Chartered Accountants, Ghana (ICAG) and the Chartered Institute of Corporate Treasurers (CICT), brings decades of robust banking and treasury experience to the table. Notably, Dr. Baah-Danquah is a devout Christian who worships with the Catholic Church, a testament to the Bank of Ghana’s strategy to ensure that non-interest banking is recognized not as a religious monopoly, but as an inclusive, ethical financial model for all Ghanaians.

Pursuant to the Non-Interest Banking Guidelines, which intentionally mandate gender diversity within its leadership framework, the central bank has also appointed Adishetu Hamidu Naabo. As a Principal Economic Officer at the Ministry of Finance, Naabo has spent years directly spearheading technical state policy on non-interest banking systems.

A collaborative ecosystem

The push toward realizing a functional non-interest banking ecosystem has relied heavily on collaborations between academic experts, state ministries, and internal regulators. During the briefing, Dr. Asiama credited academic and financial expert Professor John Gatsi for his foundational contributions to the development of the framework.

“We give Professor Gatsi a lot of credit for the work he has done,” Dr. Asiama noted.

To safely manage liquidity and integrate these specialized entities into the wider banking system, the central bank’s internal watchdogs are working hand-in-hand with incoming operators.

“The necessary structures are being put in place to ensure that non-interest banking thrives and thrives well. The head of banking supervision is also fully involved,” the Governor assured.

The successful rollout of non-interest banking is anticipated to provide alternative, low-risk capital pools for small and medium-sized enterprises (SMEs), reduce the national unbanked rate, and promote financial diversity within the Ghanaian macro-economy.

May 24, 2026
Ghana’s banking sector surges with GH¢465bn asset base

By Adnan Adams Mohammed

Following a period of intense restructuring and economic turbulence, Ghana’s banking sector has emerged with a newfound resilience.

New data from the Bank of Ghana (BoG) reveals a significant expansion in the industry’s footprint, with total assets surging to GH¢465 billion, signaling that the “cleanup” years are finally giving way to a period of robust growth.

The recovery is being attributed to a combination of strict fiscal discipline, improved macroeconomic stability, and a gradual return of credit appetite within the industrial sector.

The asset surge

The BoG’s latest Banking Sector Report paints a picture of a financial system that has successfully navigated the choppy waters of debt restructuring. The GH¢465 billion asset milestone represents a double-digit growth rate compared to the previous year, driven largely by an increase in deposits and a strategic shift in investment portfolios.

Industry analysts suggest that this liquidity provides the necessary “firepower” for banks to support the government’s recovery agenda. However, the central bank cautioned that while the balance sheets are larger, the focus must remain on asset quality to prevent a rise in non-performing loans (NPLs).

Fiscal discipline: The foundation of strength

The Managing Director of the Agricultural Development Bank (ADB) has linked this sectoral strength directly to the government’s recent economic reforms. Speaking on the sidelines of an industry gala, he noted that the “bitter pill” of fiscal discipline is finally yielding a sweeter result for the financial markets.

“Fiscal discipline has made the banking sector and Ghana’s economy stronger,” the ADB MD stated. He argued that the government’s commitment to staying within its budgetary limits has reduced the risk profile of the state, which in turn stabilizes the banks that hold significant government paper. “We are seeing a more predictable environment where banks can plan for long-term growth rather than just managing daily liquidity crises.”

The return of industrial credit

Perhaps the most encouraging sign for the “real economy” is the recovery of credit growth. After months of being locked out of affordable financing due to high interest rates and low bank confidence, Ghana’s industrial sector is beginning to see a thaw in the lending freeze.

A recent market report indicates that business confidence is improving as banks resume lending to manufacturing and construction firms. “Credit growth is showing a recovery in Ghana’s industrial sector,” the report highlighted, noting that as inflation cools, banks are becoming more willing to take on the risk of private-sector lending.

“For the first time in nearly two years, we are seeing banks proactively looking for viable projects to fund in the industrial space,” noted a representative from the Association of Ghana Industries (AGI). “This is a clear signal that the financial system is no longer just surviving; it is starting to facilitate production.”

Challenges on the horizon

Despite the positive trajectory, the sector is not without its hurdles. While assets have surged, the “mismatch” between the central bank’s reference rate and commercial lending rates remains a point of contention for many SMEs. Furthermore, the memory of the Domestic Debt Exchange Programme (DDEP) remains fresh, leaving some retail depositors still cautious about long-term investment products.

The government maintains that the current trajectory is sustainable. By maintaining fiscal discipline and encouraging digitalization within the banking halls, the Ministry of Finance aims to make the GH¢465 billion asset base a springboard for wider economic prosperity.

As the second half of 2026 approaches, the banking sector stands as the most visible evidence of Ghana’s “Economic Turnaround,” moving from a state of repair to a state of expansion.

Snapshot: Ghana’s Banking Recovery (2026)

● Total Sector Assets: GH¢465 Billion

● Key Driver: Improved fiscal discipline and deposit growth.

● Sector Outlook: Improving confidence in industrial lending.

● Primary Risk: Managing Non-Performing Loans (NPLs) as credit expands.

May 16, 2026
BoG transforms economy amid GH¢15.6bn “Stabilization Cost”

By Adnan Adams Mohammed

The Bank of Ghana (BoG) has released its 2025 annual financial statements, detailing a net loss of GH¢15.6 billion.

While the figure represents an increase from the GH¢9.4 billion loss recorded in 2024, central bank officials characterize the result as the “audited cost of restoring price stability” a price paid to pull the national economy back from the brink of collapse.

In a press briefing following the release, the Bank emphasized that its performance must be judged by its statutory mandate to maintain price and financial stability, rather than by the profit-making standards of commercial companies.

The anatomy of a recovery

The 2025 financial results reflect a year of aggressive intervention. Three core policy drivers accounted for the headline costs:

Crushing Inflation: The Bank spent GHc16.7 billion on Open Market Operations (OMO) to absorb excess liquidity. This intervention successfully drove inflation down from a peak of 54.1% to 3.2% by March 2026, marking 15 consecutive months of decline.

Building Record Reserves: The Bank’s gold purchase programme accumulated approximately 111 tonnes of gold in 2025, up from less than a tonne in 2021. This helped push total international reserves to US$14.5 billion by February 2026 the highest in Ghana’s history. The accounting cost of this scale-up was GHc9 billion.

Cedi Appreciation: In a dramatic reversal of prior years, the cedi gained 41% in value in 2025, becoming the strongest emerging market currency in the world that year. However, this strength triggered a non-cash accounting charge of GHc19.32 billion, as the cedi value of the Bank’s foreign-denominated holdings decreased on the books.

The “DDEP” legacy and negative equity

The Bank addressed its cumulative negative equity position of GHc96.3 billion, tracing its origins to the 2022 Domestic Debt Exchange Programme (DDEP).

The DDEP, a national strategy to restore debt sustainability following years of economic distress, involved a 50% “haircut” on the Bank’s holdings of government debt. This restructuring continues to affect the Bank’s financials, reducing its annual interest income by approximately GHc13 billion.

Normalizing the loss

Central bank officials noted that Ghana is not an outlier in this regard. The European Central Bank and the U.S. Federal Reserve have both reported significant losses in recent years while fighting global inflationary pressures.

“The Bank’s authority comes from law, not from its balance sheet,” the briefing noted, reassuring the public that the results do not affect the BoG’s ability to implement monetary policy or supervise the financial system.

Looking ahead: Why the trend will shift

The Bank projects that the 2025 result represents a peak. Four factors are expected to improve the financial outlook for 2026 and beyond:

Lower Liquidity Costs: With inflation at 3.2%, the large “monetary overhang” has been cleared, reducing the cost of OMO operations.

Rate Reductions: The policy rate cut from 27% to 14% means new liquidity operations cost roughly half what they did a year ago.

GANRAP Implementation: The new Ghana Accelerated National Reserve Accumulation Policy (GANRAP) will shift the financing structure of gold purchases, moving the accounting impact off the Bank’s books.

Cedi Stability: With the currency expected to remain stable at its new stronger level, the massive revaluation charges seen in 2025 are unlikely to recur.

“The financial results reflect the mechanics of stabilizing an economy that was under significant stress,” the Bank concluded. “Every cost has a name, an economic explanation, and an outcome that benefited ordinary Ghanaians”.

May 16, 2026