Government, in collaboration with financial sector regulators and industry associations, has launched the National Financial Education Campaign.
The campaign aims to enhance the financial capability of Ghanaians, enabling them to make informed financial decisions. The initiative kicked-off with a town hall meeting at the Accra Metropolitan Assembly, bringing together participants from the informal sector and youth groups in the Greater Accra Region.
The National Financial Education Campaign will be conducted across all 16 regions of Ghana, with a specific focus on the informal sector and youth groups. The campaign utilises a comprehensive approach, incorporating radio and TV discussions, public fora, town hall engagements, and social media campaigns. To ensure accessibility, educational materials have been developed and translated into eleven local languages.
The campaign’s foundation rests on five priority pillars, with the fifth pillar emphasising the need to strengthen financial capability through increased consumer awareness and understanding of financial products. Recognising that informed customers contribute to a competitive market, government conducted a preliminary assessment in 2021 which revealed that the average financial literacy score in Ghana is 12 out of 21. This indicates a lack of understanding among many Ghanaians regarding key financial issues; such as inflation’s impact, interest computations, and awareness of financial products and services.
The assessment also highlighted that only around 28% of Ghanaians follow financial sector trends, indicating a lack of interest in personal financial management. This disengagement poses challenges for informed decision-making. Inadequate financial capability not only leads to unsafe practices like storing money under mattresses, but also restricts access to liquidity for economic development.
Ghana’s recent financial sector crisis, which resulted in a lock-up of funds for many depositors and investors, was partly attributed to the financial incapability of consumers. Government allocated over GH¢25billion to address the crisis and bail out affected customers. However, despite these efforts, many financial consumers continue to use products without understanding associated risks or benefits, leaving them vulnerable to financial fraud.
Ghana’s financial inclusion journey began in 2010 with the FinScope Survey, estimating the country’s financial inclusion rate at 41%. By 2015, the Financial Inclusion Insight Survey reported an increase to 58%. To further promote financial inclusion, government developed the National Financial Inclusion and Development Strategy (NFIDS), aiming to reach 85% financial inclusion by 2023. The NFIDS focuses on five pillars: financial stability, access to quality financial services, financial infrastructure, financial consumer protection, and financial capability.
The Ministry of Finance, Bank of Ghana, Securities and Exchange Commission, National Insurance Commission, National Pensions Regulatory Authority, Ghana Deposit Protection Corporation, Ghana Microfinance Institutions Network, Ghana Association of Savings and Loans Companies, Micro Credit Association of Ghana, Co-operative Credit Unions Association, and other industry associations are actively involved in deepening financial inclusion in Ghana. This collective commitment highlights the dedication of stakeholders to achieving the country’s financial goals.
By implementing the National Financial Education Campaign and prioritising financial capability, government and its partners are taking a proactive step toward equipping Ghanaians with the necessary knowledge and skills to navigate the financial landscape, protect themselves from fraudulent schemes, and make sound financial decisions.
