World Bank urges Ghana to expand credit bureaus, collateral registries
By Praisebell Rosemond Larbi
The World Bank has urged Ghana to strengthen its credit infrastructure by expanding the reach of credit bureaus, collateral registries and green finance instruments.
The institution maintains that greater access to transparent and long-term financing is essential to drive small and medium enterprise (SME) growth, create jobs, foster innovation and ensure sustainable economic expansion.
Contained in its 2025 Policy Notes, the Bank emphasised that improving financial access goes beyond lending more capital. It requires building systems that make credit fair, safe and sustainable.
Central to this recommendation is the need to broaden the coverage of credit bureaus and collateral registries, mechanisms that enable lenders to assess the reliability and repayment capacity of potential borrowers.
Currently, one of the major barriers within Ghana’s financial sector is the exclusion of many SMEs from formal credit. This occurs largely because banks cannot easily evaluate their risk profiles or because such businesses lack acceptable collateral.
According to the World Bank, a more robust system of registries and credit reporting would reduce uncertainty, expand lending opportunities and provide crucial support for entrepreneurs seeking capital.
“Improving capabilities and expanding coverage of credit bureaus and collateral registries will streamline credit risk assessment,” the Bank stated, stressing that such reforms would give financial institutions stronger tools to evaluate borrowers while lowering systemic risks.
The recommendations extend beyond credit reporting reforms. The World Bank is also calling for the promotion of long-term financing through the introduction of innovative financial instruments such as factoring and supply chain financing.
These tools would give enterprises more stable access to capital, in contrast to short-term, high-interest loans that currently dominate the market.
Additionally, the Bank urged Ghana to strengthen guarantee schemes that incentivise climate-friendly investments.
It also recommended the adoption of a national green finance taxonomy, which would direct resources towards renewable energy, sustainable agriculture and other environmentally responsible industries.
The institution argues that if such measures are implemented, Ghanaian businesses, particularly SMEs, would gain better access to funds required for innovation, expansion and job creation.
