Jerome Christopher Atisu
Introduction
The discussion about investing in Ghana is no longer in banks or stock exchanges, but rather in WhatsApp groups, offices, churches, campuses and social media. A colleague could mention the opportunity for a treasury bill, a poster could display a screen during lunch time or a friend might send a link to a trading platform online.
That person might make a financial decision that affects his savings for decades in just a few minutes. It is no longer "if" but "when" and it is a part of daily financial life. As the cost of living increases, a household's traditional income is not enough to meet their living standards and they want to protect their income from inflation, thus increasing their interest in investing.
This generation of young workers, public servants, traders, students and small business owners aren't just asking how they can save, but how they can increase their wealth. This is a welcome change. Is a sign of ambition, financial awareness and independence. But there is a huge problem, an increasing number of people are coming in to the market without knowing what it is.
The movement, saving and investment of money is becoming easier and easier, but not for everyone. It's in this space that financial damage takes place. Financial services uptake is outpacing financial services literacy.
Without the information to know how risky an investment is, what its return is, whether a financial institution is reliable, and how to deal with behavioural biases, investing is not about making money; it's about losing money. More people must be included in the financial system but more importantly an informed financial system. In addition to access and technology, and regulation, the ability of citizens to make informed financial choices will ultimately drive inclusive finance.
1. The Rise of the Everyday Investor
The definition of investing in Ghana is no longer limited to a select few professionals and investors. People have started to like Teachers, Nurses, Public servants, Young Entrepreneurs, Traders, Students, and Private sector workers over earning more than saving. The Treasury bills, mutual funds, collective investment schemes, shares, insurance linked products, digital savings and online investment platforms are now centre stage in the eyes of the general public. This suggests a maturing financial culture and a keen interest in more than meeting day-to-day needs, and in considering how money can help ensure future security.
On the other hand, financial involvement is on the rise, according to the World Bank's Global Findex Database. The data reveals that 79% of adults in the world now have an account, while the share of adults in developing economies who save in financial accounts has increased from 37% in 2017 to 40% in 2024 (World Bank, 2025).
Moreover, the Bank of Ghana's (BoG) Annual report on payment systems oversight 2024 shows that Ghana's payment systems are still strong, and that digital payments are becoming more popular (Bank of Ghana, 2024). Citizens are not only using the financial system through formal channels but also using it extensively through digital channels. But participation doesn't necessarily mean protection. Many investors are increasingly investing in new financial products with little or no knowledge of them. It's not always possible to make good risk decisions when transferring money quickly. The question now is not so much one of access to financial services, but one of awareness of what has been accessed.
2. The Knowledge Gap Behind Financial Access
Standard indicators of financial inclusion are access to banking, mobile wallets, digital payments and formal financial services. These are important indicators but not the complete story. One individual can have a bank account and not know what interest rates are. An individual may make use of mobile money regularly and nonetheless be victim of an unregulated investment scheme.
There are financial products that can be purchased without an ability to state the risks involved in that product. That is why financial literacy is a key market infrastructure. Roads assist in the transportation of goods, and payment systems enable the movement of money; financial literacy enables individuals to make decisions about where money should go, why it should go there, and when it should stay put.
There are three significant risks to take into account for people with no financial literacy;
1. Misinformation: Due to rumours, social media claims or unconfirmed personal recommendations.
2. Mis-selling: Buying financial products which are poorly explained or sold in a manner that hides the true risk.
3. Misjudgement: Overestimate his/her own knowledge and the risk of losing capital.
These risks come at a price. All the savings that have been accumulated over the years can go down the drain in one bad move. Home budgets can be disrupted and customers' trust in financial institutions can be severely shaken. When citizens equate disappointment and loss with investing, the capital market is hurt.
3. Why Retail Investors Make Risky Decisions
There is one thing about retail investment decision making that has been substantiated by finance research, and that is that people do not make investment decisions using only numbers. They take decisions that are based on emotions, social pressure, past experiences, confidence, fear and hope.
Behavioral Finance is a theory that can account for the poor financial decisions that intelligent people make. High rewards are usually tied to high risks, many investors understand this, but they look for opportunities that promise them high returns in a quick span. Many recognise the value of diversification but still put a significant portion of their assets into a single product. While many recognize the need for regulation, they are not able to determine if a platform has a license.
One of the worst behavioural traps is being overconfident, the investor may think he knows more than they do, trading too often, not diversifying, over-exposing and ignoring professional advice. However, half-truths are a risky mix to have, half-truths provide a person with the courage to invest without the proof. Another big issue is herd behaviour, particularly in this fast-paced era of unchecked WhatsApp investment communities and social media gurus. If people see friends, colleagues or online influencers talking about a product, they may think that it is safe to do.
But, credibility does not equal opinion. We have already witnessed this happen with unregulated Ponzi schemes that offer to return your investment within a short period of time when they are inevitably bound to fail and cause the loss of the savings of ordinary Ghanaians who have trusted the public more than the regulator. A product can be very talked about with not much understanding, a platform can be modern, but not regulated and a return can be attractive but not sustainable. Access is not enough for the retail investor, they require judgement. Judgement must be taught, simplified and reinforced via trustworthy institutions.
4. Investor Protection Is Market Protection
Investor education is not merely a private concern; it is a matter of public interest. If investors don't know what they are purchasing, the trustworthiness of the entire financial system is undermined. This is being tackled by the regulatory institutions in Ghana. To promote awareness among consumers about their rights, duties and basic financial concepts, the Bank of Ghana has a dedicated financial literacy portal that uses videos, infographics and brochures (Bank of Ghana, 2026).
Likewise, investor protection falls at the core of the mandate of the Securities and Exchange Commission (SEC) Ghana. In June 2026, the Securities and Exchange Commission Ghana (SEC) released a directive to make all market operators, fintech service providers and persons behind online investment and trading platforms registered for or qualify to be registered (SEC, 2026).
The step to regulate the online investment platforms was taken to curb fraudulent and unregulated gaming platforms. This is important to note: Digital finance has made investment opportunities more accessible to the public at an unprecedented pace. A person can view an investment message, transfer funds and risk savings in minutes. Education should go hand-in-hand with regulation. Consumers should be aware of how they can check platforms, check if returns might be unrealistic, watch for signs of scams, and be familiar with the level of protection provided by regulators.
5. The Cost of Investing Blind
The consequences of investing blindly manifest in four ways:
1. Household Level: Poor investments can destroy savings, create a debt trap, and restrict a family's ability to save for education, health care, rent, and emergencies.
2. Market Level: When investors are losing money one after the other, that is when they lose their trust in the market. Inadequate understanding of and/or lack of regulation in schemes of this type may lead the participants to abandon the regulated financial markets, which has a negative impact on investment and the development of a proper investment culture.
3. Institutional Level: Regulatory and financial institutions need to devote far more time to the complaint, fraud investigation, and restoration of public confidence. Prevention of harm is much more cost-effective than fixing the damage when it has happened.
4. National Level: Low financial literacy reduces the economic resilience. A country with good money sense, risk perception and sound saving and investment systems can mobilise domestic resources, boost entrepreneurship in the business sector and combat financial abuse.
6. A Practical Framework for Retail Investors
Investor education should be hands-on. It shouldn't be a trick for setting the price, it should be a trick for teaching people to ask smarter questions prior to spending. All retail investors should be prompted to ask the following:
• Who regulates this product, platform, or institution?
• What is the real source of the promised return?
• What fees, penalties, or hidden costs are attached?
• What happens if the investment performs poorly?
• Am I investing based on evidence, or am I responding to social pressure?
• Do I understand the risk well enough to explain it to another person?
These questions are simple but can prevent catastrophic mistakes. A financially literate investor is not someone who avoids risk completely, but someone who understands and accepts risk intelligently.
7. What Must Change
Developing a stronger investment culture requires coordinated action across multiple sectors:
• Schools and Universities: The teaching of financial education should be early and practice. Pupils should learn about budgeting, saving, interest, inflation, debt, the risks of investing and awareness of fraud. It is recommended that personal finance issues be taught to students in every programme of study in universities.
• Employers: Financial wellness needs to be considered a component of employee welfare programs. The more educated staff members are more able to make decisions and suffer from financial stress less frequently.
• Regulators and Financial Institutions: Education needs to be accessible for regulators and Financial Institutions. Regulators and institutions should educate, in plain language, with local examples, in short videos, by radio discussion, and through infographics. Disclosure documents should be written at a level that an average investor can understand.
• Media Houses: Allot regular space for responsible financial education in media organisations. Financial news should not only include information on rates and market movements, but also information on how these events affect households and small investors.
• Professional Bodies: Accountants, auditors, investment analysts, academics and financial advisors need to convert their complex financial knowledge into public knowledge. Professional skills have a greater value if they make better public decisions.
8. Conclusion: Teach Money Before It Moves
Opening of bank accounts, downloading of apps and buying of investment products will not be the only factors which determine Ghana's financial future. The financial decision making knowledge of the citizens will make a difference to that future. Financial inclusion is not complete without financial literacy. If you can get people into the system, but you don't provide adequate protection within the system, then the money will flow, but people will not know where it goes.
An educated nation equips its investors, strengthens its markets, reduces the likelihood of a fraudulent scheme, and builds a culture of intelligent investing. Financial literacy is not a luxury anymore, it's investor protection, household safety, market development and economic empowerment. Understanding is the first step to confidence for citizens in investing, and we must help them to both understand and then invest.
References
Bank of Ghana. (2024). Annual report on payment systems oversight 2024. Bank of Ghana. https://www.bog.gov.org/
Bank of Ghana. (2026). Financial literacy and consumer protection. Bank of Ghana. Retrieved July 9, 2026, from https://www.bog.gov.org/financial-literacy/
Securities and Exchange Commission Ghana. (2026). Directive to market operators, fintech service providers, and persons owning or operating online investment and trading platforms. SEC Ghana. https://www.sec.gov.gh/
World Bank. (2025). The Global Findex Database 2025. World Bank Group. https://www.worldbank.org/en/publication/globalfindex
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