The National Democratic Congress Government has earmarked GH¢400 million in the 2026 budget for the establishment of the long-promised Women’s Develop
The National Democratic Congress Government has earmarked GH¢400 million in the 2026 budget for the establishment of the long-promised Women’s Development Bank, a flagship initiative designed to provide financial support and economic empowerment for women entrepreneurs nationwide.
The announcement was made by Finance Minister Cassiel Ato Forson during the presentation of the budget statement to Parliament on Thursday, November 13, 2025.
The initiative, which had first been announced in the 2025 budget with a seed allocation of GH¢51.3 million, failed to take off due to delays in fund release.
As a result, many women entrepreneurs, particularly those operating outside the formal banking system, continued to face high borrowing costs and limited access to credit. The government’s renewed commitment with a significantly higher allocation signals a stronger push to realize the bank’s objectives.
Background of the Women’s Development Bank
The Women’s Development Bank was a central campaign promise of President John Dramani Mahama and the National Democratic Congress (NDC) ahead of the 2024 general elections.
The Vice President, Prof. Jane Naana Opoku-Agyemang, personally championed the project, emphasizing its potential to empower women economically and promote financial inclusion.
The bank is envisioned as a special-purpose financial institution that would offer low-interest loans, flexible financial services, and tailored support to women-led enterprises. Its target beneficiaries range from market women and caterers to corporate women, graduates, and women in agribusiness.
The overarching aim is to reduce economic inequalities among women and strengthen their participation in the economy.
Challenges and Criticisms
The initial 2025 allocation of GH¢51.3 million failed to materialize, sparking criticism from opposition parties, business associations, and civil society. Richard Ahiagbah, Communications Director for the New Patriotic Party (NPP), described the initiative as “dead on arrival,” arguing that the initial funding was insufficient to establish a bank in Ghana.
Government ministries and agencies also struggled with a broader funding freeze, which left them unable to pay contractors, sustain ongoing projects, or meet operational obligations. This fiscal tightening, part of a broader effort to stabilize the cedi and comply with IMF directives, delayed the execution of key government policies, including initiatives targeted at women’s economic empowerment.
Support from the Business Community
The delay in launching the Women’s Development Bank has been felt keenly in the business community. Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), highlighted the crippling effects of high microfinance interest rates on women-led businesses.
Speaking on JoyNews’ PM Express, Dr. Obeng warned that many women entrepreneurs were trapped in cycles of debt due to exorbitant borrowing costs, and called for the immediate operationalization of the bank to provide affordable credit.
He further stressed that most women traders operate outside formal banking systems, relying instead on susu collectors and microfinance institutions, which charge rates significantly higher than official lending rates.
Dr. Obeng’s intervention reflects growing public pressure on the government to translate budgetary allocations into tangible support for women.
2026 Budget Commitment
The new GH¢400 million allocation in the 2026 budget is intended to provide a strong foundation for the establishment of the Women’s Development Bank, addressing criticisms of underfunding in the previous year. The funds are expected to cover initial capital, operational costs, and the design of lending programs tailored to women entrepreneurs’ needs.
Finance Minister Dr. Forson emphasized that the allocation forms part of the government’s broader strategy to promote inclusive economic growth, support small and medium enterprises, and strengthen social and financial empowerment for women across Ghana.
If implemented effectively, the Women’s Development Bank could become a pivotal instrument in unlocking the productive potential of women-led businesses, reducing reliance on high-cost credit, and fostering greater financial inclusion in Ghana.
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