Aug 16, 2017 the role of microfinance institutions in the edifice of the ghanaian financial sector. The introduction of microfinance institutions mfis is seen as the. Ghamfin has associate and honorary members who provide support services to the industry. Its members include institutions of different sizes and legal structures such as ngos, cooperatives. Sat has a long standing establishment as a nongovernmental microfinance institution in the country with impressive growing client strength adjei, 2010. A total of 146,000 namibians borrowed from microlenders in 2009, borrowing on average nad 1,634. Pdf the study inquired into why microfinance institutions mfis collapsed in the ashanti region of ghana.
Actionaid 31st december womens movement citi savings and loans catholic relief services freedom from hunger sasakawa global 2000 womens revolving loan fund. For greater impact with our funding laura foschi, executive director at ada with more than 50 microfinance institutions financed in 25 countries, ada, through the lmdf fund, becomes a relevant partner of choice for mfis. The aim of this project was to develop initial hypotheses that can. Over the past 10 years kiva has enabled more than 1. Ghana microfinance institutions network ghamfin ghamfin was legally registered in august 1998. Such manuals, which describe the methodology for analyzing microfinance institutions, already exist. Forbes firstever list of the worlds top 50 microfinance institutions were chosen from a field of 641 microcredit providers. Actionaid 31st december womens movement citi savings and loans catholic relief services freedom from hunger sasakawa global 2000 womens revolving loan fund cuso world vision womens world banking. The rate of poverty in ghana and the lack of access to credit facilities in ghana make it necessary for ghanaian to find solution to this problem hence the. In africa and other developing countries microfinance institutions mfis are the main source of finance for microenterprises anyanwu, 2004. Impact analysis of microfinance on crop production in ghana. So the critical factor beyond the nature of type of ownership which separates microfinance institutions in tiers 2 to 4 is whether they take or do not take deposits. It reports that its membership consists of 70 regulated and nonregulated microfinance institutions that together are serving over 26,000 clients. Ghana association of microfinance companies term paper.
In most of the cases, the microfinance institutions are autonomous bodies which are operated in a democratic way. Microcapital offers an intensive, remote microfinance internship program. We considered impacts on income, savings, expenditure, and the. Since the advent of microfinance banking in bangladesh in the mid 1970s, several countries have copied this financing model. Per ghanas microfinance regulatory definition, microfinance companies can be categorized into deposit or nondeposit taken institutions. It has been reported that the so far unreleased namibia financial institutions supervisory authoritys namfisas 2010 annual report indicates that namibians borrowed 24 percent more than in 2008 and approximately 120 percent more than five years ago. Box lg 149, legon, accra, ghana, corresponding author. The list was prepared by the microfinance information exchange.
We also offer housing loans to salaried workers and business owner. Introduction this article focuses on the assessment of the contribution of microfinance institutions to poverty reduction in ghana through reduction of poverty in the rural area. Pdf this article presents the findings from a 5week exploratory research project on microfinance in ghana. As at july 2016, the nonbank financial sector could boast of about 385 microfinance companies, 60 money lending institutions, and 10 financial nongovernmental organisations ngos in good standing with the bank of ghana, the regulator. Definition of microfinance microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers and insurance. Raymond amanfu, head, other financial institutions, supervision division of the bank of ghana told journalists today may, 2015 in accra that the bank has so far licensed 508 microfinance companies but the number in operation could be higher, because there are some operating illegally. The relationship between the financial structure of microfinance institutions mfis. Game theory of microfinance the microfinance games theory also supports the idea of group. If youre interested in participating in microfinance we recommend learning more about kiva, how lending works and. The aim of this project was to develop initial hypotheses that can be tested in a followup. Microfinance institutions mfi have also been around for decades, providing customers who were traditionally neglected by commercial banks. Our interns have entered fulltime positions in many top microfinance organizations. Jan 23, 2020 although microfinance is often discussed in the international context, there are several lending institutions in america that make these types of loans to increase economic opportunity in local.
Best microfinance unveils head office graphic online. These rules shall be known as nonbank financial institutions business bank of ghana rules as applicable to nondeposit taking institutions 2. Further, it doesnt discuss financial adjustments, which are needed when comparing institutions with very distinct accounting practices. Institutions were started to be established based on the goverments microfinancepolicy whose aims at raising the income of both households and enterprises, by facilitating savings, payments, and insurance and credit services mkuza, 2007. It is therefore critical to examine the actual aims of these mfis. The new microfinance handbook fills a critical gap in the current literature on financial inclusion. Difference between microcredit and microfinance with. In view of the central bank of ghanas war on the microfinance sector and public outcry on the industry in some parts of the country, the popularity of microfinance space as a means of financial. Descriptive statistics of financial characteristics of mfis in northern ghana. Microfinance, tema ghana list of companies in ghana. The authors investigate the microfinance regulatory regimes in benin, ghana, and tanzania, with a view to identifying key issues and lessons on how the overall regulatory framework affects integration of microfinance institutions into the financial system. Definition of microfinance microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers and. Wereko2 1phd candidate, banking and finance department, university of professional studies, p.
The aim of the study was to identify the role of microfinance institutions on the economic development of ghana in relation to employment, revenue generation to the economy of ghana and their social responsibility to their operating areas. Microfinance grew rapidly in ghana during the 2000s in existing financial. Legislation and regulations governing rural and micro finance institutions rmfis in ghana have evolved with the market, both opening up possibilities for new types of institutions and tightening up to restrain excessive entry and weak performance in the face of inadequate supervision capacity. The role of microfinance institutions in the edifice of the ghanaian financial sector. The specific area of development that will be discussed is ghana, which is a relatively.
The ghana association of microfinance companies gamc is an association of companies providing microfinance services. Ghana licenses 508 microfinance companies ghana business. Microfinance in africa iv fworored as the 2015 deadline for achieving the millennium development goals is fast approaching, the incidence of poverty remains a critical issue in most african countries. Microfinance grew rapidly in ghana during the 2000s in existing financial institutions, raising the percentage of the population that is banked and financially included. Impact analysis of microfinance on crop production in ghana eliasu nuhu1 alhassan inusah2 gasu rose ama3 zakaria mohammed sano4 1department of accounting and finance, islamic university college, p. Ghana licenses 508 microfinance companies ghana business news. Jan 30, 2017 per ghanas microfinance regulatory definition, microfinance companies can be categorized into deposit or nondeposit taken institutions.
Microfinance institutions and public policy wp02159 created date. In this brochure, we describe the latest trends in the microfinance industry and present how ey, as a key provider of services to microfinance institutions mfis and microfinance investment vehicles mivs, has the knowledge and experience in handling the challenges you face. The primary difference between microcredit and microfinance is that microcredit is defined as the loan facility for poor customers while a broad range of financial services for the poor clients is known as microfinance. We also describe eys position in the microfinance industry sharing the services and support that we can provide. Card ghana is an ngo founded by professionals with the aim of promoting household food security, microfinance and rural development in northern ghana. Role of microfinance institutions in ghanas socioeconomic. Opposite ghana aluminium company ltd akasanoma road. The institutions are generally engaged in savings activities and financing activities for their members. Microfinance is seen as a key development tool, and despite the current deepening crisis within the industry, it continues to grow in subsaharan africa. Performance indicators for microfinance institutions. The impulse of this research is to assess the development of microfinance in the madina area.
List of microfinance companies and services in tema ghana. We offer loan facilities to mediumscale, small and very small businesses in the formal and informal sector. This is a comprehensive database of all the licensed savings and loans. One of the earlier and longlived microcredit organizations providing small loans to rural poor with no collateral was the irish loan fund systems, initiated in the early 1700s by the nationalist jonathan. This is a comprehensive database of all the licensed financial ngos. Microfinance the provision of savings, credit, and other financial products to the poor grew rapidly in ghana during the 2000s in existing institutions. Best microfinance unveils head office graphic online graphic business. I am particularly pleased with the explicit focus on consumers and their needsthis, together with the onset of technologybased delivery models, has been the most important shift in the microfinance field over the past 15 years. Gallardo, ouattara, randhawa and steel investigate the microfinance regulatory regimes in benin, ghana and tanzania, with a view to identifying key issues and lessons on how the overall regulatory framework affects integration of microfinance institutions into the financial system. Dec 20, 2007 forbes firstever list of the worlds top 50 microfinance institutions were chosen from a field of 641 microcredit providers.
Structure and key stakeholders of microfinance in ghana. Providing loans to individuals is key to addressing poverty levels. Microfinance institutions mfis reach around 8 million clients, with more outlets than the commercial banking system. Over the past decade, microfinance institutions mfis have sprang up rapidly in the madina. Ifcs country manager in ghana, maryjean moyo, said, well managed, commercially run microfinance institutions like advans ghana are vital for creating a sound microfinance sector in ghana, boosting lending to entrepreneurs and helping to improve peoples lives. Excel united microfinance, jopat microfinance, kb star microfinance, beneficial microfinance and big dreams microfinance, are in the sunyani municipality. Microfinance institutions and public policy wp02159. Abstract microfinance is defined as the provision of financial services such as loans to lowincome households, the poor and microenterprises. Core business is the category of business to engage in which a licence has been issued to a nonbank financial institution by the bank of ghana.
Pdf financial characteristics and innovations in microfinance. Over the years, sat, like wellestablished contemporary microfinance institutions has. He has previously worked in ghana with microfinance institution womenstrust and has introductory experience in the financial services sector. May 18, 2017 the primary difference between microcredit and microfinance is that microcredit is defined as the loan facility for poor customers while a broad range of financial services for the poor clients is known as microfinance. Nov 05, 2010 it has been reported that the so far unreleased namibia financial institutions supervisory authoritys namfisas 2010 annual report indicates that namibians borrowed 24 percent more than in 2008 and approximately 120 percent more than five years ago. The 10 mfi analyzed in this study were also registered from 1982 as nongovernmental organizations ngos. Game theory of microfinance the microfinance games theory also supports the idea of group lending among micro finance institutions. Ey, as a key provider of services to microfinance institutions mfis and microfinance investment vehicles mivs, has the knowledge and experience in handling the challenges you face. Definitions ancillary business is any of the financing activities engaged for by nonbank institutions in credit business icbs, which a licensed icb undertakes additional to its core business. It should be noted that adas role is not limited to the provision of financial resources.
Department of banking and finance, university of uyo, akwaibom state, nigeria. They operate in both urban and rural areas except for three institutions that operate exclusively in the rural areas table 1. These rules shall apply to all licensed institutions which do not take deposits from the public except venture capital companies. A total of 146,000 namibians borrowed from microlenders in 2009, borrowing on average nad 1,634 approximatelycontinue reading. A list of microfinance institutions, networks and ngos active in ghana. Building inclusive financial sectors and supportive legal and regulatory frameworks for the east african region presenters nana oparedjan, ceokraban support foundation, ghana adishetu. Building inclusive financial sectors and supportive legal and regulatory frameworks for the east african region presenters nana oparedjan, ceokraban support.
The rural and community banks, savings and loans companies. This article presents the findings from a 5week exploratory research project on microfinance in ghana. Although microfinance is often discussed in the international context, there are several lending institutions in america that make these types of loans to increase economic opportunity in local. Shareholding in nondeposit taking microfinance institutions may be exclusively ghanaian, exclusively foreign or jointly ghanaian and foreign. Rohan joined microcapital following an extended internship with access development services, an indian nonprofit that provides technical assistance to indian microfinance institutions. Over the past decade, microfinance institutions mfis have sprang up rapidly in the madina area of greater accra region of ghana. Microfinance tema ghana list of ghana microfinance companies.
Rural and community banks 143 with over 651 branches and outlets savings and loans companies 24 with over 404 branches tier 2 deposit taking microfinance companies 661 credit unions 555. Benefits to interns include direct interaction with senior management and the opportunity tocontinue. Like most all other financial systems, microfinance also faces its own share of inner issues that impact on the effectiveness of the system, and threatens its ability to successfully satisfy its objectives. Since 2003, our interns have emerged from the program with a level of knowledge that is unparalleled among new entrants to the field. A financial institution specializing in banking services for lowincome groups or individuals. On shareholding, the bog stated that microfinance institutions such as susu companies, deposit collection financial bodies and money lending companies should be restricted to only ghanaians. A microfinance institution provides account services to smallbalance accounts that would not normally be accepted by traditional banks, and offers transaction services for amounts that may be smaller than the average transaction fees charged by mainstream financial institutions. Assessing the contribution of microfinance institutions to. It is limited by guarantee and was registered in ghana on the 20th of may, 2011. In south africa it has a much longer history and existed in the form of. The structure and key microfinance stakeholders in ghana consist of the following. This is a comprehensive database of all the licensed finance houses.
Poverty is a concept that applies to all humans and more seriously to people in the developing world. Member companies offer both lending and deposit products to their clients. Fasttrack microfinance ghana believes that the access to basic financial services could pull millions of ghanaians out of poverty and that is why we have voted to lend to individuals and small scale businesses. Microfinance institutions offer credit to different community and groups through different credit lending models. This is a comprehensive database of all the licensed microfinance institutions.
Background to ghamfin ghana microfinance institutions network ghamfin network of microfinance associations and their member institutions engaged in the provision of microfinance services. Procredit is the leading microfinance institution in ghana. Hotel white sands, dar es salaam, tanzania, from 17 28 november, 2008 organised by international development law organisation idlo under the theme microfinance. Ghana has almost 568 microfinance companies bank of ghana, 2015, categorizing the sector into tier2 for deposit taking and tier3 for nondeposit taking institutions. Legon, accra, ghana, corresponding author 2 dean of business, accra institute of technology, accra north, ghana abstract the rampant collapse of microfinancial institutions in ghana in recent times justifies investigation into the effect of the core services microcredit and microsavings on their sustainability.
825 34 449 720 543 471 67 1355 257 1198 588 9 462 1494 480 1443 1572 1114 709 1451 1536 1028 292 875 1040 210 1437 858 1122 720 27 244 556 307 51 22 442 229 896 1235 101 104 701 89 643 317 993 23