Tweneboa Kodua Boakye (L) and some officials of the association with the document
The Ghana Association of Savings and Loans Companies (GHASALC), have called on the government to restructure such entities into banks due to their current financial position, especially in providing services to Small Medium Enterprises (SMEs).
Chief Executive of the Association, Tweneboa Kodua Boakye who made the call at the launch of the Association’s 5-year strategic plan in Accra said with a recorded balance sheet of about $1.5 billion, savings and loans companies deserve to be called banks.
He said though they offer tailor made services to meet the financial needs of all sectors of the economy, particularly people in the low income group, they were not competitive in the financial market.
“We believe that when the name of the sector is changed and the structures are changed to explain the permissible activities, we will be receptive globally,” he added.
Mr. Kodua also appealed to the government to reconsider the micro finance policy developed with the help of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) to be adopted by cabinet at their meetings and give them the necessary support to boost their services given their role in the development of the country.
Andrew Ameckson In a speech read on his behalf, Finance Minister, Dr. Cassiel Ato Forson said the Ghanaian economy is largely informal with about 92% of all enterprises considered as Micro Small and Medium Sized Enterprises (MSMEs) contributing about 83% of jobs in the country and about 70% of the country’s GDP.
He said the banks often shy away from providing credit to this segment of the economy owing to their unique peculiarities and perceived risks.
He said to streamline the operations of the sector, the Ministry of Finance in collaboration with the Bank of Ghana, GHASALC and other industry stakeholders have been working on the introduction of a new National Microfinance Policy to serve as the blueprint for Microfinance operations in the country.
He said the policy among others will create an enabling environment for the microfinance to fully realize its socioeconomic potential by providing timely, diversified, affordable and reliable financial services to the low-income population, economically active poor and MSMEs within an integrated and sustainable financial ecosystem.
By Ebenezer K. Amponsah