News Guide Africa

Tag: Dr. Johnson Pandit Asiama

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

    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.

     

     

     

  • BoG orders banks to chase defaulters on ‘written-off loans’ …to avoid ‘moral hazard’

    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.”

     

     

     

     

     

     

  • MoMo transactions hit GH¢493.2 billion as BoG and agents push for safety amid aggressive expansion

    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.

     

     

  • BoG set to license first Non-Interest Bank soon …as two industry experts are appointed to NIFAC

    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.

     

     

     

     

     

     

     

     

     

     

     

  • IMF signals optimism for Ghana amid lingering financial headwinds

    IMF signals optimism for Ghana amid lingering financial headwinds

    By Adnan Adams Mohammed

    As Ghana prepares to transition into a post-programme era with the International Monetary Fund (IMF), the global lender is painting a picture of cautious optimism.

    While the macroeconomic horizon looks brighter, with growth projections ticking upward and inflation expected to cool, the Fund is simultaneously sounding the alarm on deep-seated vulnerabilities within the domestic banking sector that could threaten long-term stability.

    Recent data and executive assessments suggest that Ghana’s economy is beginning to turn the corner.

    Revised data

    The IMF has revised Ghana’s growth rate for 2026 to a robust 4.8%, a notable signal of resilience despite ongoing global economic pressures. Perhaps more encouraging for the average Ghanaian is the forecast for inflation, which is projected to drop to 7.9% by 2026.

    “The Fund is optimistic about Ghana’s post-programme outlook,” the IMF noted in a recent assessment, though it coupled this praise with a stern reminder. To maintain this trajectory, the lender urges “sustained fiscal discipline” to ensure that the gains made under the current programme are not eroded by election-year spending or administrative lapses.

    The banking sector: A fragile recovery

    However, beneath the surface of improving GDP figures lies a banking sector still grappling with the scars of recent domestic debt restructuring. While the industry is recording a “gradual recovery” in terms of profitability and liquidity, the IMF points out that structural risks remain uncomfortably high.

    Central to these concerns are Non-Performing Loans (NPLs) and “sovereign exposures,” which refer to the heavy volume of government debt held by local banks. These exposures remain elevated, leaving the financial system sensitive to any shifts in government creditworthiness.

    To mitigate these risks, the IMF is recommending a significant “strengthening of the Bank of Ghana’s (BoG) macro-prudential framework.” This would involve tighter oversight and more rigorous stress-testing to ensure that banks can withstand future shocks without requiring state bailouts.

    Calls for global reform

    While the IMF is advising Ghana on internal reforms, Ghanaian officials are pushing for a reciprocal evolution from the Fund itself. Speaking at recent high-level meetings, the Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, advocated for fundamental changes to how the IMF supports member countries.

    Dr. Asiama pushed for “changes to IMF support for member countries,” arguing that the current frameworks must become more flexible and responsive to the unique challenges faced by emerging economies, particularly those dealing with climate-related shocks and disproportionate debt burdens.

    Looking ahead to 2026

    The road to 2026 appears to be a dual-track journey. On one hand, the “Galamsey” of fiscal instability is being addressed through rigorous programme targets, leading to the projected 4.8% growth. On the other hand, the financial sector must navigate a “post-programme” world where the safety net of the IMF is gone, but the high NPLs remain.

    For the recovery to be meaningful for the person on the street, the projected drop in inflation must translate into lower costs of living, and the banking sector’s recovery must lead to increased lending for small businesses and agribusinesses.

    As the IMF continues its monitoring, the message to Ghana’s policymakers is clear: the foundation is being rebuilt, but the mortar is still wet. Success will depend on whether the country can pair its newfound growth with the institutional discipline required to keep the “sovereign exposures” from turning into a renewed crisis.