MCAG apprehensive over non-performing loans, strategises for redress – Director
Mr Ebenezer Quartey, Executive Director of Microfinance Association Ghana has said the Association is apprehensive about the rising non-performing loans as a serious concern not only for micro-credit institutions, but for Ghana's wider banking and financial sector. The post MCAG apprehensive over non-performing loans, strategises for redress – Director appeared first on Ghana Business News .
Ebenezer Quartey, Executive Director of Microfinance Association Ghana, expressed concern over the increasing number of non-performing loans in Ghana's microfinance sector. He emphasized the need to improve credit appraisal, monitoring, and recovery processes, as well as consider criminal sanctions in cases of deliberate or fraudulent non-repayment, while ensuring borrowers who honor their obligations are not disadvantaged.
This statement was made during the 2026 Annual General Meeting (AGM) of Micro-Credit Association Ghana (MCAG) in Ho, where Quartey addressed the challenges facing the microfinance sector under the theme "Driving Progressive Microfinance Sector Reforms: The Role of Delegated Supervision and Regulation." The Executive Director noted that despite the rising non-performing loans which reached 10.9 percent in Quarter 4, 2025, the sector remained broadly solvent.
Quartey provided data on loans outstanding at the end of Q4 from 2023 to 2025, as well as loans written off during the same period, which ranged between GH¢267,1 million and GH¢531,3 million. He also highlighted the challenges in accessing affordable funding for on-lending, stating that there was a need to identify cheaper and sustainable funding sources to enhance members' competitiveness.
The MCAG Synergy Fund is part of the Association's efforts to address these challenges, as it progresses towards preparation and implementation following the completion of sector reforms and the establishment of a new Handbook for Last Mile Providers. Quartey also outlined MCAG's seven priorities for the future, focusing on regulatory excellence, affordable funding, the Synergy Fund, membership growth, digital transformation, capacity building, and advocacy.
The Director urged microfinance institutions to adhere to regulations, pay subscriptions on time, participate in MCAG programs, and invest in staff development. He paid tribute to the MCAG Board led by chairman Benjamin Turkson Jnr. and acknowledged the support of government agencies, development partners, sister associations, sponsors, the media, and other stakeholders for their collective contributions to the growth of microfinance in Ghana.
Written by urgent.news from Ghana Business News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
