Home Business Bank loans to female borrowers increase by 116% – BoG

Bank loans to female borrowers increase by 116% – BoG

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ACCRA, GHANA: Informal worker Martha Kotey sells fabrics in Makola Market. For more than 17 years now, Martha has been trading in fabrics, first in brightly coloured printed clothes and now in school uniform fabrics. Changing businesses to school uniform fabric was a deliberate decision and market opportunity, she said. "People are opening different schools, education is moving forward, that's why I want to trade in school uniforms," she explained. Martha's transition in trading goods demonstrates the entrepreneurism of many street vendors, who continually aim to maximize their sales and profits by selling goods in high demand. Martha is one of the more than 2,000 members of the Makola Market Traders Union, an affiliate of the Ghana Trade Union Congress. Its main intervention activities include development projects in the market and negotiations with local and national government for better conditions for its members. Photo taken August 10, 2015 in Accra, Ghana. (Photo by Jonathan Torgovnik/Getty Images Reportage). FULLY RELEASED - CONSENT NUMBER: ACC005

Per the Q4 2023 Collateral Registry report by the Bank of Ghana, the gender distribution of secured loans shows that secured loans granted to individual female borrowers and businesses owned by females increased by 116

percent from GHS 609.9 million in Q4 2022 to GHS1.3 billion of secured loans in Q4 2023.

On the other hand, secured loans granted to individual male borrowers and businesses owned by males decreased by 15.9 percent to GHS3.3 billion from GHS3.9 billion over the same comparative period.

In relative terms, the percentage share of secured loans to individual male borrowers and businesses owned by males increased from 30.0 percent in Q4 2022 to 55.9 percent in Q4 2023.

Also, the share of secured loans for individual female borrowers and businesses owned by females increased from 4.6 percent in Q4 2022 to 22.2 percent during the period under review.

In terms of borrower classification, large private enterprises were the highest recipients of secured loans with a percentage share of 60.3 percent in Q4 2023, down from 82.3 percent in Q4 2022.

Individual borrowers constituted the second highest recipient of secured loans with a 20.4 percent share during the review period, up from the share of 7.7 percent share in Q4 2022.

 

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