Deposit Confidence Soars as Ghana’s Savings and Loans Sector Records 30.6% Asset Growth

Ghana’s savings and loans sector is experiencing a surge in public confidence, highlighted by a significant 39.4% year-on-year rise in deposit mobilisation, reaching GHS 6.1 billion in 2024. This rebound reflects the sector’s growing trust among the populace and its expanding role in supporting financial inclusion and economic activity, especially for micro, small, and medium-sized enterprises (MSMEs).

Data released by the Ghana Association of Savings and Loans Companies (GHASALC) reveals a robust 30.6% increase in total assets, climbing to GHS 9.63 billion in December 2024 from GHS 7.37 billion the previous year. The Gross Loan Portfolio now stands at GHS 6.48 billion, with the services sector emerging as the top beneficiary, securing over GHS 3.59 billion in credit.

Net loans saw a notable year-on-year rise of 20.5%, moving from GHS 4.69 billion to GHS 5.65 billion. This increase signifies the sector’s deepening contribution to the real economy. Additionally, total borrowings jumped by 27.2%, from GHS 1.67 billion to GHS 2.12 billion, indicating sustained reliance on external funding to meet credit demands.

At GHASALC’s 15th Annual General Meeting, CEO Tweneboah Kodua Boakye emphasized borrower transparency and proactive engagement with financial institutions as vital for sectoral health. He noted that early communication from customers facing repayment challenges could prevent defaults and foster a more sustainable lending ecosystem.

Boakye also highlighted ongoing discussions with the Bank of Ghana, suggesting forthcoming regulatory reforms and even a potential rebranding of the sector. He reaffirmed GHASALC’s commitment to expanding digital financial services, promoting homegrown institutions, and strengthening the sector’s role in inclusive development, especially through increased support for MSMEs.

Source: Citi newsroom