MICROCAPITAL STORY: Ghanaian Government Loans $625k to Individuals and Groups in the Upper East Region of Ghana through its Microfinance and Small Loans Centre, MASLOC

The Microfinance and Small Loans Centre (MASLOC), the microcredit unit of the Ghanaian government, recently loaned GHS 610,000 (approximately USD 625,243) to 3,500 individuals in the Upper East Region of Ghana. MicroCapital recently reported on MASLOC’s loans of GHS 300,000 (USD 303,797) to entrepreneurs in the Upper West Region of Ghana.

Individual beneficiaries will receive between GHS 1,000 (approximately USD 1,025) and GHS 2,500 (approximately USD 2,562) and will pay an interest rate equal to the Bank of Ghana prime rate of 16 percent plus another 2.5 percent. Groups will receive GHS 2,500 (approximately USD 2,562) to GHS 20,000 (approximately USD 20,500) and pay a 10 percent interest rate. In addition, groups will be given a month grace period and only those individuals involved in agriculture ventures will be given a year’s grace period on interest payments.

The loans will be given to individuals and groups of all trades who need financial assistance to start or expand their businesses.

The Ghanaian government established MASLOC in 2004 to manage the government’s micro and small credit programs. The Centre 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, a development organization providing financial and technical support to developing nations. MASLOC recently loaned GHS 18.3 million (approximately USD 18.8 million) to 30,000 beneficiaries. Lawrence Prempeh, the chief executive officer (CEO) of MASLOC, revealed that his organization plans to loan another GHS 37 million (approximately USD 37.9 million) to 127,000 beneficiaries in the coming future.

Additional Resources:

AllAfrica.com: “MASLOC Disburses GHS 18.3 million to 30,000 Beneficiaries” by Michael Boateng

Bank of Ghana Press Release: “Monetary Policy Committee Press Release May 2008”

“Ghana Poverty Reduction Strategy: An Agenda for Growth and Prosperity”, World Bank and Government of Ghana: February 2003

MicroCapital.org Article, June 2008: 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

Modern Ghana: “About 3,500 People to Benefit From MASLOC – Prempeh”, by GNA

The Statesman: “$50m Boost for Average Ghanaian”, by Ayuure Kapini Atafori

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