Financial NGOs in Ghana (FNGOs)

What are the licensed financial NGOs in Ghana, and what are the challenges of Financial NGOs in Ghana?

A financial NGO is a non-governmental organization that offers financial assistance to small and microenterprises, often with some form of revolving financial sustainability programs often involving skills training and technical advisory.

Financial NGOs in Ghana – Overview

In February 2017, The International Growth Centre (IGC Ghana) conducted a study on Financial NGOs and micro and
small enterprises in Ghana, subtitled, The potential of the missing middle. The study identified evidence of structural imbalance in the private sector in Ghana that includes a few large, technologically advanced, capital-intensive, and resource-based enterprises on one hand and a big number of traditional, labour-intensive, and low-productivity micro and small enterprises (MSEs) on the other. The latter are losing competitiveness and gaining a survival and informal character1, creating a “‘missing middle” with a shortage of middle-sized growth-oriented enterprises that could contribute to the country’s development.

It must be noted though that the Government of Ghana’s efforts to build a more inclusive financial system has intensified in the last ten years, creating a framework of policies, regulations, institutions, and initiatives aimed at covering medium enterprises and low-income individuals’ financial needs, especially through microfinance. Yet, access and use of financial products and services are still low, and the microfinance sector is currently failing to reach its full potential as a tool for private sector development.

IGC Ghana’s investigations proved that the record of FNGOs on microfinance is limited. Having reached only 207,919 clients, their return on assets in 2008- 2012 is negative or barely positive, hindering financial sustainability. However, it is also found that Financial NGOs in Ghana could play a critical role in terms of outreach, as the first level of formal financial inclusion for micro-enterprises, preparing the ground for them to access an increased number of products and services more adapted to their growth needs.

List of Financial NGOs in Ghana

The following is a comprehensive list of all financial NGOs licensed by the Bank of Ghana as of May 2021, there office locations, and their contact number.