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Banking & Finance

SEC Warns Public Against Unlicensed Investment Scheme ‘Mekanism’

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The Securities and Exchange Commission (SEC), Ghana, has issued a public notice cautioning the general public against an unlicensed investment scheme operated by Mekanism Marketing Ltd, also known as “Mekanism.” In a statement released on the 16th of February, 2025, the commission stated clearly that Mekanism Marketing Ltd is not licensed, authorized, or approved to operate in Ghana’s capital market hence any investment activity promoted by the entity constitutes an unauthorized and illegal capital market operation. ”The SEC states unequivocally that Mekanism Marketing Ltd is NOT licensed, authorized, or approved to operate in Ghana’s capital market. Accordingly, any investment activity promoted by this entity constitutes an unauthorized and illegal capital market activity.” According to the SEC, the scheme allegedly uses social media and online platforms to solicit funds from the public, promising fixed daily returns described as “unrealistic” and “unsustainable.” Participants are reportedly required to perform unspecified tasks labeled “Job 1” to “Job 10” in order to earn income. The regulator further warned that operating without a valid license is a criminal offense under the Securities Industry Act, 2016 (Act 929) and the Companies Act, 2019 (Act 992). The commission then advised the public to exercise extreme caution and desist from investing in any product or scheme promoted by Mekanism. It added that it is collaborating with law enforcement agencies to identify and take appropriate action against individuals behind the operation.

Albert Essien, Former Group Managing Director of Ecobank
Banking & Finance

Fix Credit Risk or Repeat the Crisis — Albert Essien’s Warning to Ghana’s Banks

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Former Group Managing Director of Ecobank, Albert Essien, has identified weak risk management — particularly credit risk — as the single biggest downside of Ghana’s banking sector. Reflecting on Ghana’s recent banking sector crisis, Mr Essien argued that the core challenge facing the industry is not regulatory compliance alone, but how effectively banks manage lending risk. According to him, while many bankers are well-trained in financial theory and risk analysis, sustainable banking requires more than technical knowledge. It requires character. “I think one of the biggest downsides for our bank sector is risk management — especially credit risk. It’s about learning the theory, yes, but also building the character,” he stated. Mr Essien noted that non-performing loans (NPLs) remain elevated — still hovering in the region of the 20 percent range — and questioned why the industry continues to struggle with credit quality. “We should ask ourselves why. How do we treat it? How do we reduce it? That is something the Institute should think about,” he said, urging professional bodies to convene experts and develop targeted programmes to address the persistent risk management gap. Beyond credit risk, the former banking executive warned that the sector is entering a new era defined by rapid automation and artificial intelligence. Having witnessed the transition from ledger books to spreadsheets, Essien says the next transformation is already underway. “We are in great automation. The future is about understanding how artificial intelligence will change the banking system,” he explained. He revealed that some financial institutions are already deploying algorithms to support lending decisions — a shift that demands new technical skills from bankers. “Banking will basically remain what it is — taking deposits, keeping some, lending some. But the mode of delivery is what is changing,” he added. His message is clear: Ghana’s banking sector must strengthen credit discipline, build ethical leadership, and embrace AI-driven innovation — or risk repeating the mistakes of the past.