A newly released Financial Services Monitor by Old Mutual Ghana has revealed that 38% of Ghanaians rely on financial support from family and friends, both locally and abroad, to sustain their monthly expenses. This statistic highlights the significant role of informal financial assistance in Ghana’s economic landscape.
The report underscores the deep-rooted Ghanaian value of communal financial support which fosters trust and unity among family networks.
Key findings of the report on borrowing sources include that:
23% of Ghanaians borrow from family or friends.
15% take loans from traditional savings groups (Susu).
13% secure loans from financial institutions.
The report noted that borrowing activity increased in 2024 compared to 2023, with more Ghanaians opting for trusted, informal lending sources. The report also reveals shifting financial attitudes among Ghanaians, thus 22% of Ghanaians express strong confidence in the national economy, up from 17% in 2023.
Meanwhile 80% anticipate an improvement in their personal financial situation within the next six months. Only 18% of Ghanaians dipped into their savings in 2024, a sharp decline from 61% in 2023.
“Only 22 percent of Ghanaians are very confident in the Ghana economy, up from 17 percent in 2023, while 80 percent believe that their financial situation will improve in the next six months”, the report highlighted.
This suggests a growing preference for alternative financial support mechanisms over depleting personal savings for short-term needs.
Speaking on the findings, Vuyokazi Madude, Group Head of Knowledge & Insights at Old Mutual Ghana, emphasized the importance of understanding financial behaviors across both formal and informal sectors. She highlighted that the Financial Services Monitor aims to enhance financial inclusion and drive initiatives that promote financial well-being among Ghanaians.
Implications for Financial Services and Policy Makers
The heavy reliance on informal financial networks presents opportunities for financial institutions to develop tailored products that bridge the gap between traditional lending and modern financial solutions. Additionally, policymakers could leverage these insights to create strategies that strengthen financial resilience and improve access to structured credit facilities for individuals and small businesses.
