The Case for a Women's Development Bank: A necessary initiative for economic growth

Access to financial services remains one of the biggest barriers to economic growth for women and young entrepreneurs in Ghana. Many women, after harvesting and selling their produce, resort to keeping their money under their pillows due to a lack of accessible and secure banking options. While institutions such as the Microfinance and Small Loans Centre (MASLOC) and the Ghana Enterprise Agency (GEA) provide loans, they are primarily focused on business financing.

A Women’s Development Bank would fill this gap by offering targeted financial services that cater to the needs of women and youth, ensuring their long-term economic stability and business growth. This deposit-taking bank will provide savings, deposit, and current account services while also offering credit facilities. Unlike the existing institutions that only give out loans without taking deposits, this bank will function as a fully licensed financial institution—ensuring secure, sustainable, and flexible banking for women and entrepreneurs.

The Role of a Women's Development Bank

The Women’s Development Bank would provide financial assistance beyond traditional business loans. It would serve as a structured financial institution where women and small-scale entrepreneurs can save, access credit, and receive financial education. This would ensure they are not left out of Ghana’s broader economic development agenda.

For example, if a woman secures a loan from MASLOC, she should be able to make repayments easily through the Women’s Development Bank. This would also help in monitoring businesses and ensuring they remain on track. The closer a bank is to its clients, the easier it becomes to trace loan defaulters and support struggling businesses.

A fully licensed Women’s Development Bank would reduce the risk of loan defaults because it would operate under an insured system. Deposits and loans would be covered by insurance, protecting the bank and its customers. Unlike loan companies that lack banking regulations, a properly structured deposit bank ensures better security for depositors and financial sustainability for entrepreneurs.

Supporting Fishermen, Fishmongers, and Coastal Entrepreneurs

One of the biggest challenges faced by fishermen, fishmongers, and small-scale coastal entrepreneurs is the lack of accessible financial services. In coastal communities like Cape Coast, Sekondi-Takoradi, and Donkorkrom in Afram Plains, many small-scale fishermen still paddle their canoes instead of using outboard motors, limiting their productivity.

A Women’s Development Bank would ensure that fishermen and fishmongers have access to soft loans, savings accounts, and credit facilities. For example, fishmongers who buy fresh fish for resale often struggle to secure capital for bulk purchases. With a dedicated banking institution, they can access structured financing to grow their businesses.

Additionally, in fishing villages like Donkorkrom, where financial institutions are almost non-existent, fishermen and traders must travel long distances—even as far as Hohoe—to access banking services. A Women’s Development Bank in such areas would ensure that financial inclusion reaches the most underserved communities.

Expanding Agricultural Finance: Support for Rice and Maize Farmers

Ghana’s agriculture sector, particularly in the Northern, North East, Savannah, and Volta regions, depends on soft loans and financial support for expansion. Rice and maize farmers, for instance, need funding to rent tractors, purchase planting machines, and acquire fertilizers. However, without a structured banking institution, they struggle to access these resources.

A Women’s Development Bank would offer flexible credit options to farmers while also playing a crucial role in post-harvest financing. The bank could assist farmers by purchasing their harvested produce, storing it, and then selling it to the Ghana Buffer Stock Company. This approach would ensure farmers receive immediate payment while stabilizing food supply chains in the country.

By offering cooperative loans and structured financial assistance, the bank would help farmers transition from subsistence farming to commercial-scale production. This initiative would be a game-changer for the agriculture sector, boosting food security and increasing farmers' income.

A Cooperative, Rural, and Insurance Model for Financial Inclusion

The Women’s Development Bank should not only focus on traditional banking but should also serve the role of a cooperative bank, a rural bank, and a credit union. By offering cooperative banking options, the bank will cater to market traders, fisherfolk, and farmers who struggle to secure individual loans.

Additionally, the bank will integrate an insurance component, ensuring that farmers, fishermen, and small-scale entrepreneurs have a safety net in times of unexpected losses. This multi-functional approach will enable the bank to serve both urban and rural communities effectively, ensuring that no one is excluded from the financial system.

Call to Action for Leadership and Financial Authorities

The establishment of a Women’s Development Bank is not just a proposal—it is a necessity. Ghana’s economic future depends on inclusive financial systems that empower women, rural entrepreneurs, and small-scale businesses. To bring this vision to reality, President John Dramani Mahama and Professor Jane Naana Opoku-Agyemang must take decisive action in championing this initiative.

At the same time, the Ministry of Finance and the Bank of Ghana, as licensing and regulatory authorities, must play a central role in ensuring the Women’s Development Bank operates with a strong legal and financial framework. As part of this process, we appeal to the Ministry of Finance and the Bank of Ghana to promote and incorporate the cooperative banking model within the bank’s structure.

By integrating cooperative, rural, and insurance options, the Women’s Development Bank will be a transformational financial institution that serves both urban and rural communities, providing a secure platform for savings, credit access, and post-harvest financial support for farmers.

At the end of the day, this bank will have to adhere to regulatory oversight, ensuring that financial practices are transparent, sustainable, and beneficial to all stakeholders. It is crucial that the Ministry of Finance and the Bank of Ghana establish clear guidelines that will allow the bank to function effectively while protecting the financial interests of women and rural entrepreneurs.

The time to act is now. The Women’s Development Bank must be prioritized, funded, and fully implemented to create a lasting impact on Ghana’s economy. We call on policymakers, financial regulators, and key stakeholders to ensure this initiative moves from a proposal to a reality.