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…recovery assignments surge
Kizito CUDJOE
Rising debt defaults are placing growing pressure on businesses across the country, with unpaid loans and trade debts straining cash flow, weakening balance sheets and contributing to the collapse of some financial institutions, according to debt-recovery firm Rosik Consults Limited.
The company said demand for its services has risen sharply since it began operations in 2022, reflecting mounting financial stress among businesses and lenders.
Recovery assignments, it was revealed, increased by 62 percent between 2022 and 2023 followed by a further 52 percent from 2023 to 2024, 66 percent in the 2024 to 2025 period and 78 percent so far in 2026.
The trend is consistent with data from the Bank of Ghana (BoG), which showed that domestic banks wrote off GH¢394.8million of bad loans in February 2026, up from GH¢275.2million for the same period of 2025 – representing a 43.4 percent increase.
The value of debts recovered each day has also climbed significantly, with average daily recoveries increasing from about GH¢400,000 to GH¢700,000.
Speaking in an interview with Business and Financial Times (B&FT), Chief Executive Officer (CEO) Isaac Amo Baning said many businesses, particularly small- and medium-sized enterprises (SMEs), continue to struggle because customers and borrowers fail to honour payment obligations.
“We recognised an alarming trend of businesses and SMEs facing collapse due to cash-flow challenges, with many defaulters unwilling to fulfil their commitments to settle overdue debts and loans,” he said.
He noted that some microfinance institutions, savings and loans companies and other businesses had collapsed after unpaid debts eroded their liquidity, highlighting the need for stronger credit management and more effective debt recovery mechanisms.
Rosik Consults, he noted, was established in May 2022 to help businesses and individuals recover outstanding debts through both administrative recoveries – where disputes are resolved without court intervention – and legal recovery when litigation becomes necessary.
The company operates on a “no recovery, no commission” model and says it has achieved a 94 percent recovery success rate.
Mr. Baning attributed the performance to a structured recovery policy, specialised training for recovery officers, strict performance targets, intensive engagement with debtors and early resolution of disputes before they escalate into legal battles.
He said about 70 percent of the firm’s recoveries are completed through administrative processes, while only 30 percent require court action despite the company maintaining a team of 18 lawyers.
“Our approach is to help both parties resolve disputes quickly and professionally. Court action is always the last option,” he said.
To promote transparency, Mr. Baning said Rosik Consults does not receive debt repayments into its own accounts. Instead, debtors pay directly into clients’ accounts, with payment slips serving as evidence of settlement.
He added that the company operates in compliance with the Borrowers and Lenders Act, 2020 (Act 1052) and trains all staff on the legal framework.
The company believes weaknesses in credit management remain a major driver of bad debts.
Mr. Baning cited poor credit documentation, inadequate credit appraisal, weak monitoring of borrowers, ineffective credit controls, inexperienced credit officers, failure to verify collateral and high lending rates as some of the factors contributing to rising loan defaults.
He identified the agricultural sector as recording the highest default rates, while Greater Accra accounts for the largest concentration of debt recovery cases.
To address the problem, he called on the BoG and Chartered Institute of Credit Management Ghana to strengthen regulations governing credit administration and encourage more credit professionals to obtain formal certification.
He also urged credit bureaus to expand their services beyond financial institutions, enabling businesses across the economy to assess customers’ creditworthiness before extending credit.
Rosik Consults, which was recognised by the Chartered Institute of Credit Management Ghana as the country’s leading debt recovery agency in 2025, operates across all 16 regions.
The company is targetting GH¢800million of debt recoveries in 2026 as it seeks to expand its footprint across Africa, betting that stronger credit discipline and professional debt recovery will become increasingly important as businesses navigate a challenging economic environment.
Published by Juliet Etefe on https://thebftonline.com/
