In a recent address at the Ghana Diaspora Investment Forum 2025 held in Accra, Dr. Zakari Mumuni, the First Deputy Governor of the Bank of Ghana (BoG), underscored the pivotal role that a stable economy plays in attracting investments crucial for national development. The forum, which took place on June 10, served as a platform for discussing the importance of a sound financial and payment ecosystem, particularly for the Ghanaian diaspora.
During his speech, Dr. Mumuni emphasized that the Bank's regulatory framework ensures that banks and other financial institutions deliver secure and transparent services to the diaspora community. This, he noted, has yielded positive feedback regarding the economic landscape of Ghana. “The Bank is steadfast in its commitment to ensuring price and financial stability,” Dr. Mumuni stated, adding that engaging with stakeholders remains a priority in enhancing relations with the diaspora.
Addressing the challenges and aspirations of attracting diaspora investments, Dr. Mumuni highlighted the significance of strengthening the financial sector. He explained that a robust financial system is instrumental in mobilizing capital from Ghanaians abroad, enabling the country to tap into vital resources for development. The Bank of Ghana has undertaken various reforms over the years, aimed at reinforcing the stability of the banking sector, ensuring it is well-capitalized and prepared to meet the demands of the rapidly growing Ghanaian economy.
These reforms have primarily focused on enhancing regulatory frameworks, strengthening monitoring and enforcement measures, and fostering a culture of ethical behavior within the financial industry. “The ongoing efforts are designed not only to maintain stability but also to build trust and confidence among investors,” he remarked.
In a bid to create a secure environment for financial transactions, especially in light of increasing digitalization in the banking sector, the Bank has introduced a directive aimed at promoting Cyber and Information Security. This initiative aligns with sustainable banking principles that advocate for responsible environmental and social practices, directly benefiting both the economy and vulnerable communities.
Despite facing various challenges, the banking sector has shown resilience, as evidenced by strong asset growth and improvements in financial stability indicators. However, Dr. Mumuni acknowledged ongoing concerns regarding asset quality. To address these issues, the Bank of Ghana has recently unveiled plans to implement a comprehensive directive aimed at curbing high levels of Non-Performing Loans (NPLs) within regulated financial institutions.
Dr. Mumuni detailed a series of proposed actions that will form part of this initiative. These include mandating the write-off of fully provisioned loans deemed non-recoverable—excluding those involving related parties—tightening restructuring rules to require sustained repayment before a loan can be reclassified, and reinforcing timely collateral recovery for overdue loans. Moreover, he stressed the importance of strengthening credit risk governance and ensuring proof of effectiveness in lending practices.
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These measures, he asserted, are crucial for restoring asset quality, promoting sound lending practices, and safeguarding the health of Ghana’s financial system. “Our commitment to enhancing regulatory policies is unwavering,” Dr. Mumuni stated. He expressed optimism that continuous improvements will encourage innovation through appropriately regulated technologies, paving the way for new savings, credit, and payment products. These advancements aim to create efficient, convenient, and inclusive financial services that can lead to broader economic benefits.
In conclusion, the First Deputy Governor reiterated the Bank of Ghana's dedication to fostering a stable financial environment that not only attracts diaspora investments but also supports sustainable economic development. As discussions at the Ghana Diaspora Investment Forum highlighted, the collaboration between the Bank, financial institutions, and stakeholders remains essential in driving Ghana’s economic aspirations forward. With ongoing reforms and a focus on creating a resilient financial ecosystem, Ghana is poised to unlock the potential of its diaspora, bolstering its development trajectory for years to come.
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