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Policy implementation deficiencies: Ghana’s microfinance sector failures

Kwami Hope Quao (Aberystwyth Business School, Aberystwyth University Mauritius Campus, Uniciti, Flic-en-Flac, Mauritius)

International Journal of Ethics and Systems

ISSN: 2514-9369

Article publication date: 12 June 2019

Issue publication date: 22 August 2019




Regulations to promote sanity in microfinance institutions and improve their operational problems yielded some results but lacked equal voice for effective implementation for its full realization. Much therefore has not changed in sub-Sahara African countries, though various types of regulation for microfinance exist. The nature and implementation of such policies therefore matter more than their mere presence. This paper aims to evaluate the nature of microfinance financial policies, given their social nature and the dynamism of their operational environment, and explores factors mitigating effective implementation of microfinance policy in Ghana.


A structured questionnaire was used to obtain data from the management and other officials of 63 microfinance institutions, and the outcome was organized into graphs and tables for descriptive analysis.


The results identified adequate adapted prudential regulation for microfinance institutions, but the formulation process lacked user input and adequate supervision, hindering effective sector policy implementation. The author therefore recommends a more inclusive and participatory policy formulation approach, creation of information platform for complete microfinance data through semi-autonomous supervisory body for microfinance services and regular full stakeholder engagement.

Research limitations/implications

Though the study is limited to tier-two microfinance institutions in Accra, it is evident that the results can be applied to the entire sector and across national borders because microfinance institutions exhibit similar or same characteristics.


This paper has not been submitted to or published by any other journal. The author certifies that the content of this paper is the product of his own work, and that other sources used in preparing this paper and their respective sources have been duly acknowledged.



Quao, K.H. (2019), "Policy implementation deficiencies: Ghana’s microfinance sector failures", International Journal of Ethics and Systems, Vol. 35 No. 3, pp. 410-425.



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