The International Finance Corporation (IFC) has reaffirmed its commitment to deepening financial inclusion and supporting Ghana’s economic growth, spotlighting the country’s Collateral Registry’s role in unlocking credit for micro, small and medium-sized enterprises (MSMEs).
Speaking at the Bank of Ghana’s Collateral Registry’s 15th anniversary on Wednesday, Kyle Kelhofer – IFC’s Senior Country Manager – lauded the Registry’s contribution in broadening access to finance.
He said the institution, backed by Switzerland’s State Secretariat for Economic Affairs (SECO), had played a key role in making Ghana’s secured transaction framework a reference point for other African nations.
The Collateral Registry, established in 2008, allows businesses to use movable assets – such as inventory, equipment and receivables – as collateral for loans. This reform has helped address longstanding credit constraints in Ghana’s private sector, particularly for MSMEs that often lack access to traditional forms of collateral such as land or buildings.
More than 80 percent of Ghana’s workforce is employed by MSMEs, which contribute over 70 percent of the country’s GDP. Yet, for years, many of these enterprises were excluded from formal credit systems due to rigid collateral requirements and information asymmetries.
Mr. Kelhofer noted that the Registry’s ability to shift lending practices toward movable assets has been transformative. An IFC evaluation in 2019 found that the system had already facilitated a significant expansion in secured lending, with most registered assets being movable. Lending to women entrepreneurs has also seen notable growth, reflecting broader progress in financial inclusion.
“These results have only continued to multiply,” Mr. Kelhofer said.
He expressed confidence in the Registry’s ongoing impact.
Ghana’s experience has attracted regional attention. Several African countries have conducted study tours to learn from the country’s secured transactions framework, many with IFC’s support. The Registry is now viewed as a model for other economies seeking to modernise their financial infrastructure and deepen credit markets.
The IFC Country Manager urged stakeholders to adapt the Registry to emerging trends in digital finance and ensure that underserved communities continue to benefit from the system. The next five years, he emphasised, will be critical to expanding the Registry’s reach and relevance.
“The financial landscape is evolving rapidly,” Mr. Kelhofer said. “The Collateral Registry must continue to embrace innovation and strengthen partnerships to meet new challenges.”
Over the past decade, IFC has invested nearly US$2billion across various sectors in Ghana – including infrastructure, agribusiness, manufacturing, and education. These investments, coupled with advisory services aimed at regulatory reform and institutional capacity building, form part of the Corporation’s broader strategy to drive inclusive growth.
Mr. Kelhofer commended the Bank of Ghana for its leadership and reiterated IFC’s long-term commitment to supporting the country’s financial sector development.
He also acknowledged the contributions of SECO, financial institutions, legal professionals and other stakeholders who have supported the initiative.
“Ghana’s Collateral Registry is not just a national success, it’s a benchmark for Africa,” he said. “IFC is proud to be part of this journey and remains committed to fostering a more inclusive financial landscape.”
