MICROCAPITAL BRIEF: Microfinance Institutions in Ghana to Charge Clients Unspecified Fee for Maintaining Deposits Beginning in October 2014

According to a statement attributed to Mr. Collins Amponsah, the board chairman of the Ghana association of microfinance companies (GAMC), an association of 560 member companies providing microfinance services, all Ghanaian microfinance institutions (MFIs) that are members of GAMC will begin charging clients an unspecified fee for managing their deposits beginning in October of 2014. The fee is intended to increase revenues in order to lower mounting operating costs of MFIs. GAMC will also investigate the reasons for the collapse of numerous Ghanaian MFIs in 2012 and 2013, as was reported by MicroCapital at the time.

As of 2013, GAMC held assets of approximately GHS 367,000 (USD 106,000).

By Simon Pfanner – Research Associate

About Ghana Association of Microfinance Companies (GAMC)

Ghana Association of Microfinance Companies (GAMC) is an association of 661 member companies providing microfinance services in Ghana. Member companies offer both lending and deposit products to their clients. It is limited by guarantee and was registered in Ghana on the 20th of May, 2011. As of 2013, GAMC held assets of approximately GHS 367,000 (USD 106,000).

Sources and Additional Resources

[1] Modern Ghana, Microfinance Institutions Resolve To Charge COT On Deposits From October

MicroCapital, March 21, 2014, Bank Of Ghana Licenses 394 Microfinance Institutions (MFIs), Donates Equipment to Trade Associations

MicroCapital, January 30, 2014, Bank of Ghana to Limit Number of Operating Licenses for Microfinance Institutions (MFIs)

MicroCapital, September 29, 2013, Microfinance Companies in Ghana Allegedly “Reaping Heavily” from Small Businesses via High Interest Rates

MicroCapital, August 22, 2013, Thirty Microfinance Institutions (MFIs) Close in Ghana

MicroCapital Profile: Ghana Association of Microfinance Companies (GAMC)

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