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    Ghana Ends ‘Wild West’ Era For Digital Lenders With Sweeping New Rules – WeeTracker

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    By Staff Reporter

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    Ghana Ends ‘Wild West’ Era For Digital Lenders With Sweeping New Rules - WeeTracker

    Ghana’s central bank has introduced a comprehensive new regulatory framework for digital lenders, mandating licensing, significant capital reserves, and strict consumer protection rules in a move that formalises the country’s fast-growing fintech sector.

    The Bank of Ghana (BoG) has issued a directive bringing all Digital Credit Services Providers (DCSPs) under its direct supervision, effectively ending a period of rapid but largely unregulated growth. The central bank will begin accepting license applications from November 3, 2025.

    The new rules establish high barriers to entry. Companies must demonstrate a minimum capital of GHC 2 M (approximately USD 162 K) and pay a license fee of GHC 20 K. Applicants are also required to submit a detailed five-year business plan and prove they have robust ICT, fraud prevention, and cybersecurity systems in place.

    A key feature of the directive is its emphasis on local participation, requiring that at least 30% of equity in any licensed digital credit firm must be held by a Ghanaian citizen. To safeguard corporate governance, directors and key managers must meet “fit and proper” standards set by the central bank.

    The regulations place a strong focus on consumer protection, directly addressing widespread complaints about predatory debt collection practices. Lenders are now prohibited from husing arassment tactics, such as making unauthorised social media publications, accessing customers’ phone contacts, or using oppressive methods to recover loans. The total value of loans issued to a single customer is capped at GHC 10 K to prevent over-indebtedness.

    This move by the Bank of Ghana follows a regional trend seen in countries like Kenya and Nigeria, where regulators are working to balance fintech innovation with consumer protection and financial stability. By enforcing these measures, the central bank aims to foster a more stable and transparent digital credit ecosystem that supports financial inclusion while curbing abusive practices.

    Feature Image Credits: Cedi Rates

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