BoG identifies $4.8bn annual SME financing gap, pushes digital data-driven lending

The Bank of Ghana (BoG) has identified a significant US$4.8 billion annual financing gap impacting small and medium-sized enterprises (SMEs) in Ghana. BoG Second Deputy Governor Matilda Asante-Asiedu spoke at the National ICT Week celebration at the University of Ghana, highlighting the disconnect between the country's sophisticated digital payment infrastructure and its credit accessibility for businesses.

Despite making significant progress in digital payments, Ghana must now focus on building stronger digital credit systems. Ms. Asante-Asiedu emphasized that mobile money records could serve as a valuable credit record, including transaction volumes, regularity, merchant activity, income patterns, and business growth or decline. She challenged the reliance on traditional collateral like land and buildings, noting that modern businesses value is often tied to contracts, receivables, and transaction histories.

The BoG is advancing open banking and open finance frameworks to unlock financing for SMEs, with the success measured by the amount of credit that reaches businesses through transaction data. The bank also identified challenges such as regulatory fragmentation, cybersecurity, data governance, and inadequate digital infrastructure that need to be addressed to allow financial innovation to scale safely and support broader economic growth in Ghana.