MICROCAPITAL BRIEF: Bank of Ghana Warns Public About Illegal Microfinance Institutions

The Bank of Ghana recently accused a group of microfinance institutions of operating illegally, including Agro Development Fund Services Limited, Hebron Financial Services, MMM, Money-doubler and Oboanipa Ventures Limited. The government of Ghana is in the process of implementing a Depositors Insurance Act after having agreed to reimburse 70,000 people who were defrauded by DKM Microfinance Company. The 661-member Ghana Association of Microfinance Companies (GAMC) has expressed the hope that these actions will boost public confidence in microfinance.

As of 2017, the Bank of Ghana has licensed 346 microfinance companies: 51 entities as “money lending companies,” 72 as “specialized deposit-taking institutions” and 140 as “rural banks.”

By Ryan Gauthier, Research Associate

Sources and Additional Resources

Citi 97.3 FM press release:

The Ghana Association of Microfinance Companies:

Bank of Ghana:

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