MICROCAPITAL BRIEF: Low Repayment Rates Threaten Ghana’s Governmental Microfinance and Small Loan Centre (MASLOC)

The Microfinance and Small Loans Center (MASLOC), a Ghanaian government-funded program established in 2004 to implement microfinance programs targeted at reducing poverty and creating jobs, reportedly has indicated that low loan repayment rates are threatening to collapse the program. Mr Kewsi Ahwoi, Ghana’s Minister of the Interior, while addressing members of the National Democratic Congress, reportedly announced these low repayment rates will make it difficult for the government to sustain the program.

As of 2011, MASLOC’s annual microcredit disbursals were GHS 241.5 billion (USD 121 million).

By Makai McClintock, Research Associate

About Microfinance and Small Loans Centre (MASLOC)
MASLOC was introduced in Ghana in 2004 under former President Kufuor’s administration. MASLOC was created as part of the Ghana Poverty Reduction Strategy, a policy agenda for poverty reduction and economic growth laid out by the Ghanaian government and the World Bank. The scheme was launched to administer, coordinate and monitor microcredit schemes in the country with the goal of making sustainable financial services available to all individuals, co-operatives and microfinance institutions (MFIs) in the country. As of 2011, MASLOC’s annual microcredit disbursals were GHS 241.5 billion (USD 121 million).

Sources and Additional Resources

Ghana Business News, “Refund MASLOC Loans or Scheme Will Collapse – Minister,” http://www.ghanabusinessnews.com/2013/05/06/refund-masloc-loans-or-scheme-will-collapse-minister/

MASLOC Website, “About Us,”http://www.masloc.gov.gh/1/About-Medium-and-Small-Loans.html

MicroCapital, July 14, 2011, “Defaults, Questionable Disbursements at Microfinance and Small Loans Centre (MASLOC) Slow Microfinance in Ghana,” https://www.microcapital.org/microcapital-brief-defaults-questionable-disbursements-at-microfinance-and-small-loans-centre-masloc-slow-microfinance-in-ghana/

MicroCapital, November 16, 2010, “Microfinance and Small Loans Centre (MASLOC) to Disburse $24m to Cover All Regions of Ghana During 2011,” https://www.microcapital.org/microcapital-brief-microfinance-and-small-loans-centre-masloc-to-disburse-24m-to-cover-all-regions-of-ghana-during-2011/

MicroCapital, December 19, 2007, “’The Micro Finance and Small Loans Fund’ in Ghana Disburses USD 7.5m Loans in Three Months,” https://www.microcapital.org/microcapital-story-%E2%80%98the-micro-finance-and-small-loans-fund%E2%80%99-in-ghana-disburses-usd-75m-loans-in-three-months/

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