Major lending requirements imposed by financial institutions in Ghana are preventing women-owned businesses from accessing the financing needed to expand their operations. According to Mr. Guillaume Valence, Managing Director of Advans Ghana, conditions such as collateral requirements, spousal consent, and signature validation create significant barriers for women entrepreneurs seeking credit.
The disclosure was made at the launch of Mmaa Mpuntuo, a de-risked financing programme for women-owned businesses, in Accra. The initiative, supported by Development Bank Ghana (DBG), aims to provide affordable financing to women-owned businesses at reduced interest rates, flexible collateral requirements, mentorship, and business advisory services. This programme seeks to address the financing challenges confronting women-owned businesses.
Data from the Bank of Ghana's Collateral Registry show that although female borrowers and women-owned businesses accounted for 82.8 per cent of all secured credit transactions in the second quarter of 2026, they received only GHS3.1 billion in secured credit. This is compared to GHS19.4 billion advanced to male borrowers and male-owned businesses. The data indicate that women account for the majority of secured credit transactions but receive comparatively lower credit values than men.
Mr. Valence noted that some financial institutions require women entrepreneurs to involve their spouses in loan agreements, while others demand collateral and extensive documentation before approving credit facilities. He queried how women-owned businesses could access financing under such requirements. This highlights the persistent gender-based inequalities in accessing finance, despite women accounting for 61 per cent of Advans Ghana's loan portfolio.
Despite their strong representation within Advans Ghana's portfolio, women-owned enterprises remain the institution's smallest clients in terms of both loan size and business scale. The Collateral Registry data supports this trend, showing that female borrowers and women-owned businesses receive significantly lower credit values than their male counterparts. Mr. Valence emphasized that refusing or declining a loan application due to inadequate collateral is not only regrettable but also a business mistake.
Mr. Valence lauded women entrepreneurs for their strong financial management skills and creditworthiness, adding that women repay loans better, employ more women, and manage their finances more effectively. He called for qualitative reporting on beneficiaries of the Mmaa Mpuntuo initiative to assess its impact, sustainability, and effectiveness. This will help determine the programme's success in addressing the financing challenges faced by women-owned businesses.
The Development Bank Ghana will support the Advans Ghana Mmaa Mpuntuo initiative with GHS20 million. The bank's Deputy Chief Executive Officer, Mr. Michael Mensah-Baah, assured beneficiaries of the programme of the bank's commitment to regularly monitor visits to assess the progress and impact of the financing support. He expressed optimism that the initiative would improve access to capital for women entrepreneurs, strengthen their businesses, and contribute to job creation and economic growth.
Key points
- Women-owned businesses in Ghana face significant barriers in accessing credit due to stringent lending requirements imposed by financial institutions.
- The Mmaa Mpuntuo programme aims to provide affordable financing to women-owned businesses at reduced interest rates and flexible collateral requirements.
- Despite accounting for the majority of secured credit transactions, women-owned businesses in Ghana receive comparatively lower credit values than their male counterparts.
