First Deputy Governor of the Bank of Ghana (BoG), Dr. Zakari Mumuni, has underscored the pivotal role of a robust financial sector in attracting and sustaining diaspora investments to fuel Ghana’s development agenda.
Speaking at the 2025 Ghana Diaspora Investment Forum held in Accra on June 10, Dr. Mumuni emphasized that “strengthening the financial sector is critical in the quest to attract diaspora investments.”
He explained that a sound financial ecosystem fosters trust, offers diaspora-focused financial products, and leverages digital platforms to remove barriers that traditionally hinder investment.
According to him, the BoG has, over the years, implemented wide-ranging reforms aimed at ensuring the stability, soundness, and resilience of the banking sector to effectively support Ghana’s growing economy. These reforms, he noted, have targeted key areas including regulatory improvements, enhanced supervision and enforcement, and the promotion of ethical conduct across the industry.
To ensure a secure and trustworthy digital financial environment, the BoG introduced a “Directive to promote Cyber and Information Security.” This, Dr. Mumuni explained, aligns with the digitalisation agenda to protect customers and maintain trust in financial transactions.
He also highlighted the introduction of sustainable banking principles, designed to embed responsible environmental and social practices in banking operations. “These are intended to benefit the economy while safeguarding communities that are most at risk,” he said.
Reflecting on the performance of the financial sector, Dr. Mumuni stated, “In the year so far, the banking sector has remained resilient.” He pointed to strong asset growth and improved financial soundness indicators, although he acknowledged that “asset quality remains a concern.”
To address this challenge, the BoG is preparing to roll out a comprehensive directive to tackle the issue of high Non-Performing Loans (NPLs). “This will, among others, include: Mandate write-offs of fully provisioned loans with no realistic recovery prospects, excluding related-party exposures. Tighten restructuring rules, requiring sustained repayment before reclassification. Enforce timely collateral recovery, especially for overdue loans, and strengthen credit risk governance and require proof of effectiveness,” Dr. Mumuni stated.
He said these measures are part of broader efforts “to restore asset quality, promote sound lending practices, and safeguard the resilience of Ghana’s financial system.”
Dr. Mumuni further emphasized the BoG’s commitment to driving innovation in the financial sector. “The Bank will undertake continuous regulatory policy enhancements to encourage more innovation through appropriately regulated technologies to drive new savings, credit, and payment products and services that promote efficient, convenient, and inclusive financial services.”
On diaspora remittances, Dr. Mumuni described them as a “critical component of Ghana’s FX buildup.” He added that new reforms are underway to tighten foreign exchange rules relating to remittance flows, aiming to reduce transaction costs, boost efficiency, and enhance security.
“It is expected that the ongoing reforms to tighten the FX rules regarding remittances will help lower costs, increase the speed of remittance services, provide a layer of security and transparency, and encourage the diaspora communities to channel more funds to Ghana,” he noted.
Looking ahead, Dr. Mumuni reaffirmed the Bank’s commitment to “promote the development of innovative diaspora-tailored financial solutions and services to facilitate their settlement and investment plans in the country.”
