By Jibril Abdul Mumuni, GNA
Accra, Oct. 1, GNA – Major lending requirements imposed by financial institutions are preventing women-owned businesses from accessing the financing needed to expand their operations, Mr Guillaume Valence, Managing Director of Advans Ghana, has disclosed.
He said conditions such as collateral requirements, spousal consent and signature validation continued to create significant barriers for women entrepreneurs seeking credit from financial institutions.
Mr Valence made the disclosure at the launch of Mmaa Mpuntuo, a de-risked financing programme for women-owned businesses, in Accra on Wednesday.
The initiative, supported by Development Bank Ghana (DBG), aims to provide affordable financing to women-owned businesses at reduced interest rates, flexible collateral requirements, mentorship and business advisory services.
Data from the Bank of Ghana’s Collateral Registry show that although female borrowers and women-owned businesses accounted for 82.8 per cent of all secured credit transactions in the second quarter of 2026, they received only GHS3.1 billion in secured credit, compared with GHS19.4 billion advanced to male borrowers and male-owned businesses.
The data indicate that although women account for the majority of secured credit transactions, they continue to receive comparatively lower credit values than men.
Mr Valence noted that some financial institutions required women entrepreneurs to involve their spouses in loan agreements, while others demanded collateral and extensive documentation before approving credit facilities.
“Sometimes financial institutions ask women business owners to bring their spouses to sign loan agreements, while others demand collateral or formal documentation. How can women-owned businesses access financing under such requirements?” he queried.
Mr Valence also highlighted persistent gender-based inequalities in accessing finance, noting that women accounted for 61 per cent of Advans Ghana’s loan portfolio.
He said the figure reflected the growing participation of women-owned businesses in the formal financial sector despite persistent barriers to accessing larger financing facilities.
However, despite their strong representation within the institution’s portfolio, women-owned enterprises remained its smallest clients in terms of both loan size and business scale.
The Collateral Registry data supported that trend, showing that female borrowers and women-owned businesses received significantly lower credit values than their male counterparts despite accounting for the majority of secured credit facilities.
Mr Valence said: “So, refusing or declining a loan application because of inadequate collateral is not only regrettable, but also a business mistake.”
He lauded women entrepreneurs for their strong financial management skills and creditworthiness adding: “Women repay loans better, employ more women and manage their finances more effectively. These are facts that have been demonstrated in many countries.”
He called for qualitative reporting on beneficiaries of the initiative to assess its impact, sustainability and effectiveness.
Mr Michael Mensah-Baah, the Deputy Chief Executive Officer of Development Bank Ghana, said the Mmaa Mpuntuo programme aligned with the bank’s mandate to promote inclusive access to finance and support underserved women owned businesses.
Highlighting other interventions by the bank, he said DBG had already disbursed GHS1.4 billion to support more than 600 women-owned businesses across the country.
The bank, he noted, would support the Advans Ghana Mmaa Mpuntuo initiative with GHS20 million to help address the financing challenges confronting women-owned businesses.
Mr Mensah-Baah assured beneficiaries of the programme of the bank’s commitment to regularly monitor visits to assess the progress and impact of the financing support.
He expressed optimism that the initiative would improve access to capital for women entrepreneurs, strengthen their businesses and contribute to job creation and economic growth.
GNA
Edited by Agnes Boye-Doe
Reporter: Jibril Abdul Mumuni
Email: [email protected]