By Maxwell Awumah
Ho, Oct 25, GNA-Mr Ebenezer Quartey, Executive Director of Microfinance Association Ghana has said the Association is apprehensive about the rising non-performing loans as a serious concern not only for micro-credit institutions, but for Ghana’s wider banking and financial sector.
“We must strengthen credit appraisal, monitoring and recovery,” he emphasised.
He called for stronger measures against willful default, including consideration of criminal sanctions, where deliberate or fraudulent conduct is established, subject to due process.
“Borrowers who honour their obligations should not be disadvantaged by deliberate non-repayment.”
Mr Quartey made these disclosures in an address during the 2026 Annual General Meeting (AGM) of Micro-Credit Association Ghana (MCAG) in Ho on Friday.
The three-day event is under the theme, “Driving Progressive Microfinance Sector Reforms: The Role of Delegated Supervision and Regulation,” which he said speaks directly to its mandate adding “Effective delegated supervision requires clear expectations, reliable data, appropriate supervisory tools, professional capacity and accountability.”
He said the sector continued to remain broadly solvent, albeit non-performing loans (NPLs), reaching 10.9 per cent in Quarter 4, 2025, exceeding the industry benchmark of 5%.
The Executive Director said loans outstanding at the end of Q4 of 2025, 2024 and 2023 stood at GHS 531,3 million; GHS 376,1 and GHS 267,1, respectively.
He however said loans written off during the same period of 2025, 2024 and 2023 stood at GHS 1.646 million; GHS 2.175 million and GHS 2.243.
Loans distributed within the same period stood at GHS 448,4 million; GHS 333,7 million and GHS 229,0 million; for 2025, 2024 and 2023, he added.
Mr Quartey disclosed that access to affordable funding for on-lending remains a major challenge with management working to identify cheaper and sustainable funding sources to strengthen members’ competitiveness and help provide more affordable financial services.
He added that MCAG Synergy Fund forms part of the effort with progressing preparatory work and implementation following the conclusion of the sector reforms and the development of the new Handbook for Last Mile Providers.
“This will help ensure that the Fund operates within a clear regulatory framework, supported by appropriate governance and risk management,” he said.
On technology, he said MCAG would support responsible digital adoption, with particular attention to cybersecurity, consumer and data protection, and continue improving its own digital platforms and data management systems.
In line with MCAG’s strategic plan and the evolving regulatory environment, Mr Quartey declared management intention to focus on seven priorities including: regulatory and supervisory excellence; affordable funding; the Synergy Fund; membership growth and member value; digital transformation; capacity building and professionalisation; and advocacy and strategic partnerships.
He urged membership to comply with applicable regulations, pay subscriptions promptly, participate in MCAG programmes, provide reliable industry data, invest in staff, adopt appropriate technology and support the Association’s regulatory, supervisory and advocacy mandate.
He paid glowing tribute to the Board, led by the Board Chairperson, Mr Benjamin Turkson Jnr., the National Consultative Council and member of MCAG; the Bank of Ghana, acknowledged efforts of Government agencies, development partners, sister associations, sponsors, the media, and other partners for their collective inspirations.
The Executive Director said the future of micro-credit in Ghana requires strong institutions, effective regulation, and collective commitment, declaring that “MCAG remains committed to building a stronger Association and a more professional, inclusive industry.”
GNA
Edited By: Kenneth Odeng Adade
Reported By: Maxwell Awumah
Email: [email protected]