The Controller and Accountant General’s Employees Cooperative Credit Union (CAGECCU) saw its total assets increase by 17.75% to GHS 50.16 million in 2025. This growth occurred despite the union recording net deficits for two consecutive financial years, preventing dividend payments to members.
CAGECCU's membership also expanded by 8.75%, reaching 5,916 members in 2025 from 5,440 in 2024. Members' savings grew by 19.90% to GHS 45.51 million, while loan disbursements surged by 45.60% to GHS 18.72 million. Investments also saw a substantial increase of 58.60%, reaching GHS 13.77 million.
These positive operational figures contrast with the financial challenges faced by the union. CAGECCU incurred net deficits of GHS 1.01 million in 2024 and GHS 877,643.58 in 2025. These losses stemmed primarily from impairment losses on investments locked up with various fund management companies. The union also experienced liquidity pressures due to delays of up to three months in monthly remittances from the Controller and Accountant-General’s Department.
Professor Samuel Simpson, an Associate Professor of Accounting, Governance, and Sustainability at the University of Ghana Business School, emphasized the critical need for credit unions to embrace technology. Speaking at CAGECCU's 24th Annual General Meeting in Accra, Professor Simpson stated that technology can significantly improve services, attract younger members, and enhance financial inclusion. He highlighted the benefits of mobile applications and digital platforms for account access, balance checks, transfers, and payments, reducing the need for physical branch visits.
Professor Simpson further explained that technology strengthens transparency by providing members with clear transaction records and audit trails. He also advised members to be vigilant about cybersecurity risks, urging them to protect their passwords and mobile devices. He encouraged members to minimize unnecessary withdrawals from their savings. Instead, he suggested taking loans against their savings, where possible, to allow their deposits to continue earning interest. This strategy, he noted, represents a 'smart system' approach to managing personal finances within a credit union.
The financial challenges, particularly the locked-up investments, reflect broader issues within Ghana's financial sector. Several fund management companies faced regulatory actions and liquidity crises in recent years, impacting numerous investors, including institutional bodies like credit unions. The delay in remittances from a government department also points to potential public finance management issues that can affect the liquidity of entities reliant on such transfers.
The inability to recommend dividends for two financial years will likely concern CAGECCU members. This situation could affect member confidence and the union's attractiveness compared to other savings and investment options. The newly elected five-member board, chaired by Kofi A. Agyen, faces the immediate task of addressing these financial hurdles. Their focus will be on recovering locked-up funds and ensuring timely remittances to restore the union's financial health and ability to reward members.
The emphasis on technology by Professor Simpson suggests a path forward for credit unions to remain competitive and relevant. Adopting digital solutions could streamline operations, reduce costs, and offer more convenient services, potentially mitigating some of the liquidity challenges by improving cash flow management. The market will closely watch how CAGECCU and other credit unions navigate these financial pressures while integrating technological advancements to serve their members better.