The microfinance sector in Ghana is beginning to emerge as a viable, prosperous, and growing industry.
Of those living below the poverty line, the majority remain financially excluded, producing a massive potential demand for microfinance.
In spite of this, microfinance has been relatively slow to take hold in West Africa in comparison with East Africa, Latin America or Asia.
The sector in this region is now catching up rapidly. The combination of recently found political stability, market potential, entrance of international microfinance networks and increased experimentation in institutional products and services has started to attract the interest of commercial investors.
The sector in Ghana is evolving from an informal field of disjointed initiatives into an industry that has benefited from various reorganisations by the central banks, apex bodies and associations, thereby attracting investors, networks and technical service providers.
There is the on going drive to focus on Micro, Small, and Medium Enterprises (MSMEs); Most for-profit MFIs are now focusing on lending to SMEs and salaried employees. Their portfolios are mostly urban and average loan balances are above USD 1,000.