Finance Minister Hails Nyakrom Community Bank as Ghana Marks 50 Years of Rural Banking

Finance Minister Dr Cassiel Ato Forson has praised Nyakrom Community Bank PLC for its pioneering role in rural banking, as Ghana celebrates five decades since the introduction of a model that has grown to 147 banks serving more than 800,000 customers nationwide.

Speaking at a durbar to mark the bank's 50th anniversary at Nyakrom in the Agona West District, Dr Forson said the milestone was particularly significant as the sector transitions from rural to community banking under reforms by the Bank of Ghana .

The Birth of a Model

The rural banking concept was introduced in 1976 by the Government of Ghana in collaboration with the Bank of Ghana, as an antidote to the long-standing exclusion of rural communities from formal financial services. Before its introduction, rural Ghanaians had limited access to credit, with financing coming mainly from informal savings—money often kept at home—while rural businesses remained underdeveloped .

At the heart of the story is Dr Samuel Dufu, the inventor and pioneer of rural banking in Ghana, who explained the concept and its benefits to the then Omanhene, chiefs and people of Nyakrom. Convinced by his vision, the community formed a seven-member promotion team that later became the bank's first board of directors. On July 9, 1976, Nyakrom Rural Bank was born as the first rural bank in Ghana, with Dr Dufu elected its first board chairman .

Dr Dufu said the bank's first project was to redeem and return all cocoa farms ceded to moneylenders to their owners, bringing relief to impoverished farmers. He remained chairman for 30 years until 2006 .

"Rural banking was a calling and one needed a heart of love to man it," Dr Dufu said. "My experience in rural banking during the past 50 years has taught me that any good project would endure and thrive when given the required commitment and nurturing" .

Sector Growth and Impact

Dr Forson noted that the community banking sector has grown to 147 banks with about 1,000 branches and over 800,000 customers nationwide, playing a pivotal role in expanding access to credit, mobilising rural savings and supporting enterprises. The sector has created thousands of jobs for the youth and improved rural and peri-urban livelihoods .

Nyakrom Community Bank itself has grown from a single branch to 11 branches with more than 350 staff and approximately 100,000 customers, expanding into multiple regions over the past four years . As of August 2026, the bank's total assets stood at GH¢232 million, with loans of GH¢146 million, deposits of GH¢203 million and start-up capital of GH¢8.3 million—far above the Bank of Ghana's requirement under its microfinance reforms framework .

A Call for Tax Relief

CEO Kaidebi Donkor used the occasion to appeal to the Finance Minister and parliamentarians to consider reducing the 30 per cent tax imposed on the profits of community banks, saying it was affecting their smooth operations .

Board Chairman Nana Ambrose Linson-Arthur said the bank had offered 50 years of financial inclusion, self-reliance and community development. Farmers in cocoa, oil palm, cassava and vegetable production had been financed, while traders and SMEs in various markets were expanding their businesses and creating jobs. The bank has also provided school loans and educational support to parents and students, and partnered with health centres, churches and educational institutions through corporate social responsibility .

The bank is now positioning itself for the next phase, with plans to deepen financial inclusion through agency banking, mobile money partnerships, new products for women, youth and agribusiness, and investment in cybersecurity and digital platforms .

The Transition to Community Banking

The Finance Minister noted that the banking landscape had become increasingly competitive with the conversion of rural banks into community banks, making competition keener and fiercer. The inherent idea of rural banking, he said, had finally been realised through the Bank of Ghana's reforms, which deserved to be celebrated .

In 1996, consultants from the Philippines, Messrs SGV&CO, were commissioned to study the situation of rural banks and recommended that an apex institution be set up to provide technical, managerial and financial support—a recommendation that led to the establishment of ARB Apex Bank, whose Acting Managing Director Curtis William Brentuo was present at the durbar .

Other speakers included Dr Kwadwo Asmah, CEO of Amenfiman Community Bank PLC; Alhaji Hayatudeen Awudu Ibrahim, President of the National Association of Community Banks; and Madam Patience Antonio, President of the Central Regional Chapter Association of Community Banks .

As Nyakrom marks half a century, the institution's story is a reminder that the most durable financial innovations are often those rooted in the needs of the communities they serve.