Sonzele Community Bank PLC has launched an aggressive share mobilisation campaign to meet the Bank of Ghana's (BoG) new GHS 5 million minimum capital requirement by December 2026. This strategic move comes as the bank rewards its shareholders with a substantial 25.8% dividend payout for the 2025 financial year.
The bank, which currently holds a stated capital of GHS 2.28 million, is actively calling on indigenes, members of the diaspora, and the youth to increase their investments. This effort aims to bridge the significant capital shortfall and secure the financial institution's long-term future. The dividend payment follows a pre-tax profit of GHS 3.7 million in 2025, demonstrating the bank's financial resilience despite broader economic challenges.
This recapitalisation drive is part of a broader regulatory overhaul by the Bank of Ghana affecting all rural and community banks. The BoG has mandated that these institutions rebrand to 'Community Banks' and increase their minimum stated capital from GHS 1 million to GHS 5 million by December 31, 2026. This directive aims to strengthen the financial sector and ensure the stability of these vital local institutions across Ghana.
Board Chairman Michael Zuraih, speaking at the bank's 36th Annual General Meeting (AGM) in Jirapa, confirmed the dividend proposal. He noted that the Board is proposing a payment of GHS 0.258 per share for the year under review. Mr. Zuraih highlighted that the bank's total assets grew by 19.19% to GHS 84.3 million in 2025, despite challenging economic conditions and falling Treasury bill rates.
The implications of failing to meet the new capital threshold are severe for any financial institution. Fred Tweneboa, Wa Branch Manager of ARB Apex Bank, warned that failure to bridge the capital gap could lead to operational limitations, heightened supervisory interventions, or necessitate alternative strategic options under the reform framework. This underscores the critical importance of Sonzele Community Bank's current share mobilisation efforts.
Chief Executive Officer Abdul-Sallam Bamie emphasised that the rebranding from a 'rural bank' to a 'community bank' is a strategic move for greater inclusivity. He explained that the new identity aims to attract a wider range of investors, particularly younger individuals, by shedding the limiting perception of a 'rural bank'. Mr. Bamie also highlighted the attractive 25.8% return on investment for shareholders.
The urgency of the recapitalisation effort has garnered significant support from political and traditional leaders. Upper West Regional Minister Charles Lwanga Puozuing, a shareholder himself, urged residents to invest further, envisioning the bank's potential growth into a fully-fledged commercial bank. Traditional leaders, represented by Konkuo Naa, Naa Angdelle Haara, also stressed the importance of community loyalty and support for the bank, which has deep roots in the region.
Local government officials, including District Chief Executive Mary Haruna, linked strong local banking practices to broader socioeconomic stability and community safety. She stressed that the responsibility for recapitalising community banks rests with every shareholder. This collective effort is seen as crucial for the region's development and security.
The AGM also saw a display of solidarity among regional financial institutions. Fredrick Ahah Diegol, CEO of Lawra Area Community Bank PLC, appealed to affluent residents to support other struggling banks in the region. He warned against allowing any community banks to fail, emphasising the need for a strong, collective financial sector in the Upper West region.