Accra: Economist Dr Sam Ankrah has called for African microfinance to be treated as a competitive institutional asset class, not a charity project, as he delivered the keynote address at the International Microfinance Investors' Summit 2026 on August 6 in Accra. The two-day summit was convened by the Financial Inclusion Advocacy Centre (FIAC) and partners. Held under the theme 'Repositioning Microfinance for Investment, Growth and Stability,' the summit aimed to mobilize investment and set practical reforms for inclusive growth across the continent.
According to Ghana Web, senior executives from central banks, ARB Apex Bank, GHAMFIN, CUA, rural and micro-credit associations, as well as delegations from Nigeria, Sierra Leone, Liberia, and The Gambia, attended the Accra gathering. Opening his address, Dr Ankrah noted the continental scope of the discussion, emphasizing that this was not just a local conversation but a widespread dialogue taking place across various African cities including Lagos, Dakar, and Nairobi. He highlighted the importance of governance, competency, and effective regulation as crucial elements in establishing a resilient microfinance ecosystem, dismissing capital as a mere outcome once these elements are in place.
Dr Ankrah cited structural data to underline the significance of the microfinance sector, pointing out that approximately 86 percent of employment in Sub-Saharan Africa is informal, a figure that rises above 90 percent in Central and West Africa. He addressed the large financing gap for small businesses in the region, estimated at $331 billion by the IFC. Governance failures, he argued, are the principal cause of institutional collapse, with Nigeria and Ghana having revoked numerous microfinance licenses due to such issues. He criticized the lack of authoritative oversight and endorsed Ghana's new ownership caps as a direct attack on the mechanisms that have historically failed institutions.
On the topic of competency, Dr Ankrah expressed concerns over whether institutions are improving their boards, risk functions, and management systems alongside their balance sheets. He stressed the importance of having the capability to produce essential documents like audited accounts and board minutes on demand. He also urged regulatory bodies to shift from compliance-heavy policing to genuine risk-based supervision, using Kenya's digital lending growth as an example of the need for improved oversight.
Dr Ankrah also discussed Ghana's ongoing reforms, recommending the publication of consolidation data and the issuance of governance directives before capital deadlines. He pointed out the inefficacy of relying solely on capital floors for stability, using Nigeria's license revocations and India's post-2010 regulatory rebuild as lessons.
Highlighting the role of technology, Dr Ankrah mentioned that Africa processed approximately $1.1 trillion through mobile money in 2024, signifying the changing economics of financial delivery. However, he cautioned that digitization without proper governance could exacerbate existing issues, citing Kenya's digital credit boom as an example.
On funding, Dr Ankrah presented figures showing that while global and Africa-focused funds hold substantial amounts of capital, only a small fraction is allocated to microfinance. He identified the lack of investable institutions and clear risk profiles as the primary barriers to capital deployment, rather than a shortage of funds. He highlighted the potential of blended finance and existing tools like TCX and the African Guarantee Fund to address currency mismatches and other challenges.
Dr Ankrah concluded with specific recommendations for regulators, institutions, investors, and associations, emphasizing the need for improved data publication, governance reform, and resource allocation. The summit is expected to produce a roadmap for consolidating microfinance institutions, strengthening supervision, and channeling blended finance into the sector in line with the theme of investment, growth, and stability.