Bank of Ghana Introduces New Rules for Digital Credit Providers
The Bank of Ghana (BoG) is set to introduce new regulations aimed at streamlining and overseeing the digital credit landscape. The “Directive for Digital Credit Services Providers, 2025” is slated to take effect on November 1, 2025. This move underscores the growing significance of digital credit in Ghana and across the African continent, as the BoG seeks to establish a structured framework for the sector.
Key Provisions of the New Directive
The primary objective of this directive is to provide a defined licensing and regulatory framework for entities providing digital credit services. This includes fintech companies and applications offering small, short-term loans through digital channels. These new guidelines aim to safeguard consumers while also ensuring the stability of Ghana’s financial system. The directive covers several key areas. Firstly, it mandates that all digital credit service providers obtain a specific license to operate; unauthorized operation will be strictly prohibited. The rules also specify operational standards, data protection protocols, risk management practices, and penalties for non-compliance. There are also provisions to ensure Ghanaian participation in digital credit businesses, with a minimum of 30% Ghanaian equity required. Furthermore, the directive limits the ownership of shares, stating that no single individual can own more than 90% of a company’s shares. Crucially, the directive differentiates digital credit firms from traditional banks, payment service providers, and deposit-taking institutions.
This directive represents a significant step toward regulating the burgeoning digital credit market. By establishing clear guidelines, the Bank of Ghana hopes to foster a more transparent and secure environment for both borrowers and lenders within Ghana’s financial technology ecosystem, and by extension, within the broader African context.
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