Accra: Dr Sam Ankrah, an esteemed investment expert and development economist, has urged African governments, regulators, and financial institutions to focus on governance, institutional competence, and risk-based supervision to attract the necessary investments for the continent's burgeoning informal economy.
According to Ghana Web, Dr Ankrah delivered a compelling keynote address at the International Microfinance Investors' Summit 2026 held in Accra, emphasizing the need to reposition microfinance as a viable financial asset that can drive inclusive economic growth. He highlighted the significant financing gap of over US$331 billion that hinders the growth of Africa's informal sector, which is crucial for employment and entrepreneurship across the continent.
During his address, Dr Ankrah stressed that governance should take precedence over merely increasing capital requirements. He pointed out that 'good governance produces capital-not the other way around,' underscoring the importance of trusted institutions. He referenced financial sector reforms in countries like Ghana and Nigeria, noting that many failures were due to weak governance rather than insufficient capital.
Dr Ankrah called on financial institutions to enhance their internal controls, improve the quality of audited accounts, and invest in competent risk management systems. He urged regulators to shift from compliance-driven supervision to risk-based regulation to preempt potential systemic crises. He further emphasized the critical role of governance in digital transformation, warning that technology alone cannot compensate for poor governance in financial institutions.
He advocated for increased transparency through the publication of market data and encouraged the adoption of blended finance models to mitigate investment risks. Dr Ankrah noted that Africa's share of global impact investment in microfinance is limited, not due to a lack of capital, but because few institutions meet international governance standards.
Dr Ankrah concluded by calling for stronger collaboration among all stakeholders to build robust financial institutions capable of mobilizing capital and supporting small businesses, ultimately accelerating Africa's economic transformation.