MICROCAPITAL STORY: ‘The Micro Finance and Small Loans Fund’ in Ghana Disburses USD 7.5m Loans in Three Months

The Ghanian Government has disbursed USD 7.5 million (GHC 72 billion) in microfinance loans in the last three months, via its new agency, ‘The Micro Finance and Small Loans Centre’ (MASLOC). The agency manages the government fund designed make sustainable financial services available to individuals, co-operatives and other groups in grassroot communities in both urban and rural areas.

During October and November, money was disbursed throughout the various regions of Ghana, with the Ashanti region disbursing USD 2 million, having received 5,000 applications, the Volta region disbursing USD 1.3 million and the remainder going to the Greater Accra Region, where 10,000 applications had been made.

There are two types of loans available: those worth USD 25 to 1,000 which charge 12% interest, and those worth USD 1,150 to 25,000 charging 16% interest.

MASLOC was launched in July 2006 by President John Agyekum Kufuor with a USD 50 million kitty. It was designed to be a key platform in the government’s engine Growth and Poverty Reduction Strategy (GPRS) II programme. Since then it has employed 450 personnel nationwide to advise and supervise applicants.

This announcement comes days after The Ghana Microfinance Institutions Network (GHAMFIN) and SPEED Ghana launched a consumer education and protection (CEP) campaign that specifically targeted customers of the country’s microfinance sector, as reported by MicroCapital.

According to a paper produced at the Woodrow Wilson School of Public and International Affairs in 2004, the number of potential clients of formal microfinance institutions in Ghana is estimated to be 3 million. The same paper reported that there were 117 rural banks, 10 savings and loan providers, 253 credit unions, 50 NGOs and over 4,000 informal traders and moneylenders in the country serving 2.8 million clients with various financial services.

At the MASLOC announcement Mr Joseph Kwaku Nayan, Deputy Volta Regional Minister told recipients, “Remember that the money is not a Christmas gift, so use it well and pay back early for others to also benefit.”

Amy Rennison, MicroCapital writer

Additional Sources:

The Statesman:
http://www.thestatesmanonline.com/pages/news_detail.php?newsid=5435&section=2

The Statesman:
http://www.thestatesmanonline.com/pages/news_detail.php?newsid=385&section=5

Myjoyonline.com
http://www.myjoyonline.com/business/200712/10924.asp

Business Ghana:
http://www.businessghana.com/portal/news/index.php?op=getNews&id=75149

Similar Posts:

1 comment

Comments are closed.