Ghana’s microfinance sector must strengthen governance, risk management and customer protection to build public confidence and expand access to sustainable financial services, a microfinance consultant has said.
Reverend Dr Daniel Agbeko, a microfinance consultant and entrepreneur, said reforms would deliver lasting benefits only if institutions improved accountability, complied with regulatory requirements and protected customers against risks.
He made the remarks while delivering the keynote address at the 2026 Annual General Meeting of the Micro-Credit Association Ghana (MCAG) in Ho.
The three-day meeting was held under the theme, “Driving Progressive Microfinance Sector Reforms: The Role of Delegated Supervision and Regulation.”
Dr Agbeko, who is also a Senior Lecturer and Head of the Department of Multidisciplinary Studies at Ho Technical University, said the sector needed reforms that addressed structural weaknesses while strengthening its contribution to financial inclusion and economic development.
He said the revised microfinance sector framework introduced by the Bank of Ghana provided an opportunity to improve institutional accountability, strengthen risk management, promote responsible financial inclusion and support the adoption of technology.
For microfinance institutions, he said, the challenge was to translate the new regulatory direction into stronger operational practices and sustainable business models capable of maintaining customer confidence.
Dr Agbeko identified delegated supervision as one mechanism that could improve regulatory oversight, particularly for institutions serving communities beyond the reach of conventional financial services.
The arrangement involves assigning specified supervisory responsibilities to competent institutions or bodies under defined mandates, reporting requirements and regulatory oversight.
He said effective delegation could widen supervisory coverage, increase the frequency of monitoring, improve early-warning systems and enable emerging risks to be detected before they threatened institutions and their customers.
It could also reduce the cost of routine supervision, encourage specialised expertise and create opportunities to build the capacity of institutions involved in oversight.
However, he cautioned that these benefits would depend on the competence, independence and accountability of the bodies performing delegated functions.
Without adequate safeguards, he said, the arrangement could create conflicts of interest, inconsistent supervisory practices, weak reporting and delays in regulatory intervention.
He stressed that clear responsibilities, reliable information systems, appropriate enforcement mechanisms and sustained accountability were necessary to ensure delegated supervision strengthened rather than weakened regulatory effectiveness.
Dr Agbeko called on industry stakeholders to work together to build a microfinance sector that was accessible to underserved communities, resilient to emerging risks and committed to responsible innovation and customer protection.
He said effective regulation should not only identify institutional weaknesses but also ensure that risks were addressed before they caused harm to customers and threatened financial institutions.
Mr Benjamin Tuckson Jr, Board Chairman of MCAG, said the Association needed to adapt to changes in the regulatory environment while maintaining its core values of integrity, service excellence and partnership.
He said the industry’s future depended on its ability to embrace reforms, strengthen institutions, invest in people, adopt appropriate technology and maintain high standards of governance and consumer protection.
Mr Tuckson urged members to strengthen collaboration with regulators, their respective institutions and the Association, noting that the reputation of the entire sector depended on the conduct and performance of its individual players.
