MICROCAPITAL STORY: The Government of Ghana Loans GHS 300,000 (USD 303,797) to Entrepreneurs in Upper West Region through MASLOC, the Micro-finance and Small Loans Centre

The Ghanaian Government recently loaned GHS 300,000 (USD 303,797) via its Micro-finance and Small Loans Centre (MASLOC). The GHS 300,000 was divided into loans of between GHS 2,500 (USD 2,532) and GHS 3,000 (USD 3,038), to be distributed to 164 groups of the Upper West Region of Ghana. The loans were given to groups throughout each district of the region. The government aims at providing for both small business and farming activities of 2,270 individuals.

Ghana’s Government officially created MASLOC in 2004 to administer, coordinate and monitor microcredit schemes in Ghana. In September 2006, President John Agyekum Kufuor launched nine new regional offices and simultaneously directed USD 50 million towards the establishment of a Micro Credit Fund to provide capital to Ghana’s microfinance initiatives. Also in 2006, through its varied microfinance initiatives, the government loaned GHC 154 billion (USD 17.4 million) to 103,000 borrowers (pg 302).The Ghanaian government reports that the Micro Credit Fund capitalized at USD 50 million in 2007.

By Sarah Knapp, Research Assistance

Additional Resources

Ghanaian Government: Budget 2007 Business in Ghana at 50

News: The Ghanaian Times, The Statesman

Speech by the Minister of Finance and Economic Planning, Barclay’s Micro Banking Awards Night, September 2007

Statement by Hon. Alima Mahama, United Nations International Forum to Build Inclusive Financial Sectors, November 2005