The Ghana Association of Savings and Loans Companies (GHASALC) has thrown its support behind the Bank of Ghana’s (BoG) newly introduced reforms in the microfinance sector, while cautioning that the implementation deadlines may be too tight for operators to realistically meet.
The association’s concerns follow the Central Bank’s rollout of a comprehensive regulatory framework that raises minimum capital requirements, reorganises the sector into defined operational tiers, and mandates full compliance by December 31, 2026.
While welcoming the reforms, GHASALC has called for deeper engagement with the regulator on the transition period, stressing that the current timelines could place unnecessary strain on otherwise viable institutions.
Speaking in an interview on Monday, February 2, 2026, Chief Executive Officer of GHASALC, Tweneboah Kodua Boakye, said the reforms would strengthen regulation, enhance customer protection, and improve long-term stability in the sector. However, he noted that the pace of implementation, particularly regarding capital increases, requires reconsideration.
According to Mr Boakye, the association aligns fully with the Bank of Ghana’s objective of building a more resilient financial system and improving governance standards across microfinance and community banking institutions. He pointed out, however, that expecting firms to raise capital significantly within a short period presents a major challenge.
“It is good that the regulator is increasing capital requirements. As much as this is positive, there are other issues that need further discussion, especially the transition arrangements and the timeframe for meeting these targets. We believe that through engagement, these concerns can be addressed. Overall, the reforms are good for the industry,” he said.
Under the new framework, microfinance companies currently operating with a minimum paid-up capital of GH¢2 million will be required to substantially increase their capital levels within the implementation window.
Mr Boakye argued that requiring institutions to meet sharply higher capital thresholds within about 11 months or less is overly demanding and could destabilise firms that are otherwise financially sound.
He reiterated GHASALC’s support for the direction of the reforms but stressed that critical transitional issues particularly timelines and operational adjustments must be carefully discussed with the Bank of Ghana to ensure a smooth transition.
The association expressed optimism that continued dialogue with the Central Bank would lead to a more realistic implementation roadmap one that protects financial stability while ensuring the sustainability of operators within the industry.
The Bank of Ghana has consistently maintained that the reforms are aimed at restoring confidence in the microfinance sector, protecting depositors, and reducing systemic risks that have historically affected the industry. For many operators, however, the concern is not the intent of the reforms, but the speed at which they are expected to be implemented.
