Mrs Sarah Tsien Zetterli, Managing Director of ProCredit Savings and Loan Company of Ghana, reportedly stated recently that the microfinance market in Ghana has become overcrowded and that tighter entry requirements for microfinance institutions (MFIs) must be established by the Bank of Ghana. Mrs Zetterli was quoted as saying, “Customers are taking multiple loans from these institutions and are unable to pay and the last thing we want is to get is to see small and medium-sized entreprises (SMEs) indebted.”
ProCredit’s focus in Ghana is on developing and lending to SMEs. As of 2011, ProCredit Ghana had a gross loan portfolio of USD 34 million and deposits of USD 44 million. ProCredit Ghana is one of 21 banks held by Germany’s ProCredit Holding.
By Mihaela Grindeanu, Research Associate
About ProCredit Savings and Loans Company Ltd. (ProCredit): ProCredit is a development-oriented financial institution lending to micro, small and medium-sized enterprises. It is part of the ProCredit Group, which is controlled by ProCredit Holding, a German company with assets totaling USD 6.8 billion. As of 2011, ProCredit Ghana had a gross loan portfolio of USD 34 million and deposits of USD 44 million.
About ProCredit Holding: Based in Germany, ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have previously had limited access to formal financial services. As of December 31, 2010, it reported assets of EUR 5.2 billion (USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (USD 4.8 billion).
Sources and Additional Resources:
Ghana Business News Story: “Ghana’s microfinance market becoming over-crowded – ProCredit MD”, http://www.ghanabusinessnews.com/ghanas-microfinance-market-becoming-over-crowded-procredit-md/
MicroCapital Story, March 21, 2012: “MICROCAPITAL BRIEF: Bank of Ghana (BOG) Pursues Tighter Regulation, Enforcement of Microfinance Sector”, https://www.microcapital.org/microcapital-brief-bank-of-ghana-bog-pursues-tighter-regulation-enforcement-of-microfinance-sector/
MicroCapital Story, May 9, 2012: MICROCAPITAL BRIEF: Bank of Ghana (BoG) Expected to Shut Down Unlicensed Microfinance Institutions MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited, Swift Financial Services”, https://www.microcapital.org/microcapital-brief-bank-of-ghana-bog-expected-to-shut-down-unlicensed-microfinance-institutions-medlorm-microfinance-limited-african-guarantee-trust-abbey-cash-microfinance-limited-swift-financi/
MicroCapital Universe Profile: ProCredit Ghana, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+SLC+Ghana
MicroCapital Universe Profile: ProCredit Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding
MicroCapital Universe Profile: Bank of Ghana, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Ghana+%28BOG%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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