Strong, Stable, and Brimming with Innovation

The financial services sector in Ghana continues to demonstrate resilience and growth, driven by ongoing digitisation, progressive regulatory support, and increasing investor confidence. This dynamic landscape encompasses a diverse range of institutions, including domestic and international banks, insurance providers, asset managers, and a thriving stock exchange.

BANKING SECTOR: STABILITY AND DIGITAL EVOLUTION

Ghana’s banking landscape currently comprises 23 banks, operating under the stringent oversight of the Bank of Ghana (BoG). These institutions are central to providing a wide array of financial services to individuals, businesses, and the government. Complementing the banking sector are 25 savings and loans institutions, 11 finance houses, and 3 finance and leasing houses, offering specialised services that broaden financial access.

The banking sector remained stable in 2024, with assets growing by 33.8% and stable capital adequacy ratios. While the non-performing loan ratio rose to 21.8% by the end of 2024, continued profit growth, recapitalisation efforts, and stringent credit standards are essential for full recovery.

The central bank is keen to support digitisation, in alignment with the government’s cash-lite agenda, promoting digital payments and ensuring a secure payment infrastructure. As well as announcing plans to enable and regulate trade in cryptocurrencies, the bank has undertaken testing for the e-Cedi, a digital currency, in collaboration with Giesecke+Devrient (G+D), with a report released in July 2025.

INSURANCE

The Ghanaian insurance sector operates under the oversight of the National Insurance Commission (NIC). While the sector has witnessed substantial growth over the years, insurance penetration currently stands at a mere 1.4% of GDP, lagging behind regional peers. This low penetration is attributed to limited awareness, high premium costs, and distrust of insurance providers. However, when considering health insurance and pensions, the penetration rate is estimated to be 3%, indicating significant room for improvement.

The market remains somewhat concentrated, with the top four companies in the life segment accounting for about 75% of all life insurance premiums. The fragmented market below the top players, where smaller insurers hold less than 8% market share, suggests potential for consolidation, possibly driven by foreign entrants.

Technological advancements, particularly in direct digital sales and services, are aiding in increasing insurance accessibility. The NIC continues to advance its digital transformation agenda, and new mobile-driven insurance solutions are being launched, leveraging mobile money platforms to provide affordable protection.

CAPITAL MARKET: GROWTH TRAJECTORY AND DIVERSIFICATION

The Ghana Stock Exchange (GSE) serves as a vital platform for trading securities. As of July 2025, the Ghanaian financial market boasts a market capitalisation of GH¢139.88 billion, reflecting the expanding size and scope of investment opportunities. The GSE lists a variety of securities, including shares, corporate bonds, municipal bonds, government bonds, and unit trusts, with leading domestic banks, mining, and food and drink companies among its listed entities. The Ghana Fixed Income Market facilitates secondary trading of fixed income and other securities, further contributing to market liquidity.

The GSE’s three-year strategic plan, launched in 2021, continues to drive the transformation of the capital market from a frontier to an emerging market. This includes initiatives to introduce new products like derivatives and green bonds to enhance liquidity and attract investors. The Securities and Exchange Commission (SEC) maintains a balanced approach to market regulation, fostering innovation while safeguarding investor interests, market integrity, and financial stability.

PENSIONS SECTOR: EXPANDING COVERAGE AND INNOVATIVE SOLUTIONS

Ghana’s pension schemes aim to provide retirement benefits through a three-tiered structure: the Basic National Social Security Scheme (tier 1, mandatory, administered by the state-owned Social Security and National Insurance Trust); a mandatory, fully-funded occupational pension scheme (tier 2); and a voluntary provident fund and personal pension plans (tier 3).

The National Pensions Regulatory Authority (NPRA) continues to implement its strategic plan to increase pension coverage to 40% by 2026, aiming to reduce old-age poverty and boost the sector’s contribution to the economy.

REGULATORY LANDSCAPE AND FUTURE OUTLOOKS

The Bank of Ghana is actively preparing to commence regulation of virtual assets by the end of September 2025 through the enactment of a Virtual Asset Service Provider (VASP) law. This move aims to license and supervise entities in the digital asset space, address regulatory gaps, and enhance consumer protection. The Bank of Ghana also issued the Climate-Related Financial Risk Directive in November 2024, signalling a focus on sustainable finance.

Overall, Ghana’s financial services sector presents a compelling frontier for investment. The combination of a stable banking system, a growing insurance market driven by digital adoption, a maturing capital market with a focus on diversification, and an expanding pension sector offering innovative solutions, positions Ghana as a promising destination for both local and international investors seeking growth opportunities in a dynamic African economy. Challenges such as financial literacy and digital infrastructure gaps in rural areas remain, but ongoing efforts by regulators and market participants are addressing these to further strengthen the sector’s foundation.

SECTOR OPPORTUNITIES

Partnering with insurance companies to expand their market reach through Bancassurance.
Partnering with the One District One Factory Initiative (1D1F) to provide subsidised loans to emerging companies, boosting their loan book balance and interest income.
Opportunities exist in developing technological infrastructure for online banking, enhancing convenience and accessibility for customers.
Establishing banking institutions like savings and loans companies to target the unbanked population, providing financial services to those who cannot access traditional banking systems.
Introduction of InsurTech solutions to offer policies and claims filing through mobile devices, eliminating the need for physical branches.
Marketing microinsurance policies to low-income individuals who may not have access to traditional insurance services.
As lending rates decrease, the demand for mortgage facilities increases, providing opportunities for financial institutions to offer insurance products for these properties.
The GSE plans to introduce Green Market products and derivatives, providing more investing opportunities for pension funds and allowing them to diversify their asset base.
There are opportunities to establish institutions and mutual funds to leverage global securities, potentially attracting the unbanked population through education about investing.
Opportunities exist to invest in fintech solutions that improve cybersecurity within the capital markets, ensuring the safety of transactions and data.
With Ghana’s relatively high literacy rate of 69.8% there are opportunities to encourage the population to enrol in voluntary pension schemes, fostering a savings culture among citizens.
The NPRA’s decision to allow private equity fund managers access to a portion of the GH¢22 billion managed by private pension schemes creates opportunities for foreign investors to participate in such funds.
NPRA aims to introduce special legislation for the informal sector, leveraging mobile money platforms to promote pension coverage and offering incentives to members who choose this method for retirement planning.

INVESTMENT INCENTIVES

Ghana’s youthful population of 30.8 million, expected to grow at a compound annual growth rate (CAGR) of 2% in the next 10 years, offers significant potential for economic transformation and growth, particularly in the financial sector.
Initiatives across the financial industry aim to capture the unbanked population, evident in the substantial growth of mobile money transactions from GH¢32.8 billion as of December 2019 to GH¢162 billion by year end 2023.
The NPRA has permitted pension funds to invest in private equity, aiming to diversify Ghanaian pension fund assets and provide a capital boost for the economy.
Various sub-sectors within the financial industry are developing technological infrastructure, such as online banking applications, enabling customers to conduct financial transactions seamlessly through online platforms, enhancing convenience and accessibility.
Aligned with the SEC’s strategic plan, the Ghana Stock Exchange will introduce securities focusing on sustainability and green practices. This initiative provides investors with more options for investment securities, tapping into the global trend towards green business practices.