Governor of the Bank of Ghana, Dr. Johnson Asiama, has highlighted the transformative role of the Collateral Registry in expanding financial inclusion and unlocking credit for Micro, Small, and Medium-Sized Enterprises (MSMEs).
Speaking through a representative at the 15th anniversary celebration of the Registry in Accra, Dr. Asiama said that the Registry has helped democratize finance in Ghana by enabling businesses without traditional collateral, such as land or buildings to use movable assets like stock, receivables, equipment, and vehicles to secure loans.
“More than a registry, it has become a tool of empowerment, it has opened access to credit for underserved groups and contributed significantly to job creation, business resilience, and local economic development,” Dr. Asiama said.
Established in February 2010 under the Borrowers and Lenders Act, 2008 (Act 773) which is now replaced by Act 1052 of 2020, the Collateral Registry was created to address longstanding issues of information asymmetry, fragmented legal frameworks, and the lack of a unified system for securing credit.
Before the Registry’s establishment, Ghana’s lending environment was constrained by limited transparency and a heavy reliance on immovable property as collateral. Many small business owners, lacking such assets, were effectively excluded from formal credit systems.
“Fifteen years ago, access to credit in Ghana was often constrained by rigid collateral systems, today, more Ghanaians can secure financing using movable assets, ranging from tools of trade to machinery and inventory, thanks to the work we celebrate here,” Dr. Asiama noted.
He emphasized that the Registry has become a trusted platform for both lenders and borrowers. It enables real-time verification of asset pledges, reducing credit risk and enhancing the ability of financial institutions to make informed decisions.
“Lenders can now confirm whether an asset has already been pledged, improving transparency and boosting confidence in secured lending,” he explained.
The Registry has also streamlined the enforcement of security interests. Instead of lengthy court procedures, lenders can now obtain a Memorandum of No Objection from the Registry, allowing them to enforce claims more efficiently.
So far, more than 4,450 such certificates have been issued, signaling growing trust and utilization of the system.
Dr. Asiama called the Registry’s progress a key milestone in Ghana’s financial sector reforms and reiterated the Bank of Ghana’s commitment to ensuring that financial access continues to expand, especially for the underserved MSME sector.
