Lack of Trust in Africa’s Financial Systems Hurting Economic Growth – Prof. Bokpin Warns

Renowned economist and professor of finance at the University of Ghana, Professor Godfred Bokpin, has raised concerns over the persistent lack of trust in Africa’s financial systems, warning that it is a major barrier to the continent’s economic growth and development.

Speaking at a financial inclusion forum in Accra on Wednesday, July 9, 2025, Prof. Bokpin noted that widespread distrust in banking institutions, regulatory frameworks, and monetary policy execution is discouraging savings, limiting credit access, and undermining investor confidence across many African economies.

“Africa cannot achieve sustainable growth if its people and businesses continue to doubt the credibility and stability of its financial systems,” he stated.

According to Prof. Bokpin, low public confidence in the financial sector—fueled by mismanagement, weak oversight, and past banking crises—has resulted in informal financial practices dominating the economic landscape, making it difficult for governments to mobilize domestic resources effectively.

“People are keeping their money under mattresses or using unregulated financial schemes because they simply do not trust the system. This not only restricts access to capital but also deprives governments of revenue needed for development,” he explained.

He called on policymakers to prioritize transparency, strengthen regulatory institutions, and invest in financial literacy as part of efforts to rebuild public trust and expand formal economic participation.

“Trust is not given; it is earned. Financial systems must demonstrate consistency, integrity, and protection of depositor interests to win back the confidence of the African people,” Prof. Bokpin emphasized.

His remarks come at a time when several African countries are implementing reforms aimed at improving financial inclusion and digitizing their economies. However, analysts say without restoring public trust, such reforms may fall short of delivering their full potential.