The Greater Accra region has maintained its dominance in the secured loan market, accounting for 69.6% of the total value of secured loans disbursed by banks and Specialized Deposit-Taking Institutions (SDIs) in the fourth quarter of 2024.

This is according to the latest data from the Bank of Ghana (BoG), which highlights regional disparities in the distribution of secured loans across the country.

This figure represents a marginal decline of 1.2 percentage points from the 70.8% share recorded in the same period in 2023. However, it still reflects the region’s position as the economic hub of Ghana, attracting the majority of financial activities, including loan disbursements.

Following Greater Accra, the Ashanti and Western regions recorded the second and third highest shares of secured loans, with 14.0% and 4.2%, respectively. These regions have historically been significant contributors to Ghana’s economy, with Ashanti being a commercial and trade center and the Western region benefiting from its role in the oil, gas, and mining sectors.

In contrast, the lowest recipients of secured loans in the last quarter of 2024 were the Savannah and North-East regions, which accounted for only 0.04% and 0.02% of the total secured loans, respectively. These figures reflect the lower levels of economic activity in these regions compared to more industrialized and commercial areas like Accra and Kumasi.

Overall, the data from the BoG indicates that the Greater Accra and Ashanti regions collectively received more than 80% of the total secured loans granted by banks and SDIs in the fourth quarter of 2024. This underscores the financial sector’s concentration in regions with strong economic activity, leaving less developed areas with limited access to credit.

Factors Influencing Regional Loan Distribution

The disparity in secured loan distribution across regions can largely be attributed to variations in economic activity. Greater Accra, being the country’s administrative and business center, attracts a high concentration of commercial enterprises, multinational companies, and financial institutions.

The presence of these economic drivers creates a higher demand for secured loans, with businesses and individuals leveraging credit facilities to finance operations, expand investments, and purchase assets.

Similarly, the Ashanti and Western regions have vibrant economies that contribute to their relatively higher share of secured loans. Kumasi, the capital of the Ashanti region, serves as a key trading hub, while the Western region’s industrial activities—especially in oil exploration, mining, and shipping—necessitate access to financial services.

Conversely, regions with lower shares of secured loans, such as Savannah and North-East, are predominantly agrarian with limited industrial and commercial activity. The lack of significant economic drivers in these areas reduces the demand for secured credit, leading to minimal loan disbursement.

Gender Distribution of Secured Loans

In addition to regional differences, the BoG report provides insights into the gender-based distribution of secured loans. It reveals a significant increase in secured loans granted to female borrowers and women-owned businesses.

In Q4 2024, female borrowers and businesses owned by women received GH¢1.5 billion in secured loans, marking a 15.4% increase from GH¢1.3 billion in Q4 2023. Meanwhile, secured loans granted to male borrowers and businesses owned by men rose by 15.2% to GH¢3.8 billion from GH¢3.3 billion in the previous year.

Interestingly, despite the increase in absolute figures, the percentage share of secured loans granted to male borrowers and businesses owned by men declined from 86.6% in Q4 2023 to 71.7% in Q4 2024. This suggests that financial institutions are gradually extending more credit to women entrepreneurs and female-led businesses.

On the other hand, the share of secured loans allocated to female borrowers and women-led businesses increased to 28.3% in Q4 2024, up from 13.4% in Q4 2023. This shift indicates a growing focus on financial inclusion and gender parity in loan disbursement, allowing more women to access secured credit for business expansion and economic participation.

Implications for Economic Growth

The Bank of Ghana’s data highlights key trends in secured loan distribution, shedding light on regional and gender disparities in financial access. The dominance of Greater Accra and Ashanti in secured loan allocation reflects the economic weight of these regions, while the marginal access to credit in less industrialized areas calls for targeted financial interventions to promote balanced economic growth.

Additionally, the increasing share of secured loans granted to female borrowers is a positive development in fostering gender-inclusive economic growth. As more women gain access to credit, their businesses can expand, leading to job creation and enhanced financial stability.