Daniel Agbeko urges microfinance sector to adopt revised BoG framework

Reverend Dr. Daniel Agbeko, a Senior Lecturer at Ho Technical University, has called for significant reforms in Ghana’s microfinance sector to prioritize governance and customer protection. Speaking at the 2026 Annual General Meeting (AGM) of the Micro-Credit Association Ghana (MCAG), Dr. Agbeko highlighted the necessity of moving beyond institutional restructuring to address deep-seated structural weaknesses within the industry. He noted that the sector's success is vital for broader socio-economic development and requires a shift toward more robust regulatory compliance.

The academic emphasized the importance of the Bank of Ghana’s revised microfinance framework, which is specifically designed to bolster governance standards and enhance risk management. He urged industry stakeholders to fully embrace this framework to improve operational efficiency and foster greater financial inclusion. According to Dr. Agbeko, collective efforts are essential to ensure that reforms lead to sustainable improvements in how microfinance institutions serve their clients and manage internal risks.

A key focus of the discussion was the concept of delegated supervision, a regulatory strategy where specific supervisory tasks are assigned to qualified institutions. Dr. Agbeko noted that while this approach could significantly improve monitoring and risk mitigation, its success depends on having clearly defined roles and competent organizations to manage the delegated responsibilities. He warned that without these safeguards, the benefits of such supervision might not be fully realized, potentially leaving the sector vulnerable to mismanagement.

Supporting these calls for reform, MCAG Board Chairman Benjamin Tuckson Jr. underscored the need for the industry to adapt to evolving regulatory environments. He maintained that the future of the micro-credit sector relies on maintaining high standards of consumer protection and fostering collaboration among all stakeholders. The association remains committed to navigating these changes to ensure the long-term stability and credibility of the financial ecosystem in Ghana.