Collapsing Microfinance Institutions in Ghana: An Account of How Four Expanded and Imploded in the Ashanti Region

SSRN Electronic Journal 2026 Preprint Open access

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Authors: Festival Godwin Boateng, Stephen Nortey, Jonas Asamanin Barnie, Peter Dwumah, Martin Acheampong, Eunice Ackom-Sampene
DOI: 10.2139/ssrn.6003415
Cited by: 33
References: 7

Abstract

The study inquired into why microfinance institutions (MFIs) collapsed in the Ashanti Region of Ghana. The authors found that the problem related primarily to unduly risky, unethical and illegal practices, mismanagement and disregard of due diligence, which when convoluted by external factors like macroeconomic instabilities and panic withdrawals, pushed the risk levels of MFIs beyond the point of containment. We argue that the 2013 macroeconomic crisis in Ghana only contributed to the huge number MFIs involved and the pervasiveness of the collapsethe crisis was not a root cause.

Fields of Study & Subjects

Microfinance and Financial Inclusion Islamic Finance and Banking Studies Urban and Rural Development Challenges

Publication details

Journal / source
SSRN Electronic Journal
Publisher
Elsevier BV
Volume
3
Issue
2
Pages
5
Publication date
1 January 2026
Language
EN
Document type
Preprint