Thursday, February 24, 2011

Microfinance Open Source

Created for the microfinance industry, Mifos is a management information system (MIS) featuring a user-friendly, web interface running on top of a robust MySQL database. Flexible to meet your unique operational needs and scalable for rapid growth, Mifos enables real-time access to data across your organization from any web browser. Features include client management, loan and savings portfolio management, transaction processing, and social and business reporting and analytics.

Developed by an expert team of developers and supported by a global open source community, the Mifos platform lets MFI customers operate efficiently, with the flexibility to extend new services to more effectively empower the poor. The Mifos Community Edition is freely downloadable, to implement on your own or with the support of a local Mifos Specialist . For more information contact us on ghana-microfinance@jcs.com.gh

Thursday, February 17, 2011

MASLOC now commercial oriented

The Micro-Finance and Small-Loans Centre (MASLOC), is now a fully commercially orientated small businesses financing entity. Mr Carlos de-Souza, a Lawyer with MASLOC told journalists in Ho, on Tuesday, that the centre has began prosecuting loan defaulters, who borrowed from it.

He said to qualify for a MASLOC loan facility, one needs to have a verifiable and credible business plan and not political credentials. Mr de-Souza said the restructuring of MASLOC, had changed the institution functionally and structurally, into a much more efficient micro-credit outfit than before.

He said all loan defaulters nationwide, will be made to pay, and that MASLOC will seek court orders to auction business and personal assets of recalcitrant loan defaulters.

Mr Victor Attiase, Acting Volta Regional Manager of MASLOC, attributed the non-payment of loans by the defaulters to 93credit indiscipline" by some.

He said under the new scheme, credit officers, who does the appraisals and recommendations will take full responsibilities for the projects. Mr Attiase said these officers are assessed based on their ability to recoup credits, stressing that, many of the new officers had micro-credit financing backgrounds.


Source: GNA

MASLOC begins prosecution of loan defaulters

Ten out of the over 200 defaulters of the Micro-Finance and Small Loans Centre (MASLOC) credits, in the Ho Municipal Area, were on Tuesday, arraigned before the Ho Municipal Magistrate's Court. They are Regina Amematekpor, Antie Addakey, Patience Apreku, Isaac Azadagli, Glover Mensah Raphael, John Defor, Anthony Gogah, Nelson Asase, Margaret Letsa and Olivia Safor.

They did not file affidavits of opposition to the writs of summons and were committed by Mr Yaw Atta Sampong, a Circuit Court Judge sitting as Magistrate, to pay up or suffer sanctions.

He awarded penalties and cost against some of the defendants while others, deemed to have made some attempts at settling the loans were spared

Mr Carlos de-Souza, a Lawyer, who represented MASLOC, said the loans were granted from state funds and recipients have the 93civic responsibili= ty" to pay back, but some had made no attempt at paying.

The loans, granted in 2008 ranged from GHC1,000 to GHC3,000.


Source: GNA

Kwabre credit union makes giant strides

The Kwabre Co-operative Credit Union has within less than two years of operations made giant strides in savings mobilisation and membership drive. Mr Stephen Ofori Amanfo, Chairman of the Board of Directors, said its total deposits now stand at GH¢30,000.00.

It has GH¢39,980.00 in share capital with total assets put at GH¢34,300.00. He was addressing the maiden annual general meeting of the credit union at Fawoade in the Kwabre East District of the Ashanti Region. He said the number of contributors was growing from a modest figure of eight in December 2009 to 185 currently.

The Board Chairman said the goal of the union was to help reduce poverty in the area by helping the people to expand their economic activities. Madam Diana Kusi Yeboah, District Co-operative Officer, praised the management of the union for the pace of growth and urged them to sustain the momentum. She urged them to stick to the best practices to protect the money of contributors. Madam Yeboah encouraged the people to adopt the culture of saving part of their income towards the future.


Source: GNA

Unibank earmarks GHC470 million for SMEs this year

Unibank Ghana Limited says it has set aside GHC470 million to support Small and Medium Scale business in the country this year alone.
Chief Executive Officer of Unibank, Mr. Amishadai Owusu Amoah told Adom News that in 2009 the bank gave out GHC110 million in loans to SMEs and last year they doubled the figure to GHC220 million but this year they have earmarked GHC470 for the sector.
This year’s amount represents more than 100 per cent increase over that of last year, and Mr. Owusu Amoah said “just like the churches sing and say ‘double, double’ this year we are giving ‘double, double’ loans to SMEs.”
He noted that SMEs complain of lack of loan facilities from the local banks, but Unibank have proved beyond measure that it is committed to helping small businesses in Ghana to grow into big businesses.
“Our primary mission is to support SMEs and we believe that by helping SMEs to expand our bank also expands,” he said.
Mr. Owusu Amoah assured the SMEs and prospective business people that Unibank continues to give loans at very competitive interest rates, with flexible repayment terms, adding that it also gives financial and business advice to assist customer grow their businesses.
He mentioned some of the businesses who benefit from the bank’s loans as people who trade between Ghana and China and Dubai, mobile phone and recharge cards dealers, players in the construction industry, and sachet and bottle water manufacturers.
“We will not relent on our commitment to the SME sector,” he assured.
Mr. Owusu Amoah urged young men and women who want to expand their businesses or need start-up capital between GHC5,000 and GHC10,000 to walk to Unibank and the bank will listen to them.

Source: Ghanaweb

Department of Co-operatives registers 100 credit unions

The Ashanti Regional Office of the Department of Co-operatives has within the past five years

registered 100 credit unions in the region. Mr Kofi Nsiah Amponsah, the Regional Director of the Department, said given the crucial role the credit unions are playing in the fight to reduce poverty, his office would do everything to assist them. Speaking to the Ghana News Agency (GNA) in Kumasi, he

commended the unions for supporting their members to go into viable economic ventures. Mr Amponsah identified loan delinquency and internal power struggles as major challenges faced by the unions, which needed to be tackled to achieve optimal performance. The co-operative concept, he noted, was important for the agricultural and transport sectors and should be adopted by people in these sectors to boost production. Mr Amponsah said his department was stuck with a number of the problems of inadequate staff, lack of transport and computers and appealed to the government to help them address these concerns.


Source: GNA

Inflation rises for first time in 19 months

Ghana's inflation rate jumped to 9.08 percent in January, the first increase in 19 months and due partly to a 30 percent rise in petrol prices, but analysts still expect the central bank to keep interest rates on hold next week.

The rise in inflation from 8.58 percent in December came after President John Atta Mills' government introduced an unpopular 30 percent rise in petrol and diesel prices last month to keep pace with rising crude oil prices and to pay back public debts.

Inflation in Ghana, the world's second-largest cocoa producer and Africa's No. 2 gold miner, is set to reach double digits in coming months due to the fuel price hike, together with a recent weakening of the cedi currency and impending oil export revenues, analysts say.

"The fuel price will continue to impact on prices," Ebo Duncan of the national statistics office told a news conference.

Non-food items, including fuel, rose during January at an annualised rate of 11.83 percent, while food items rose just 4.84 percent, data showed on Wednesday.

Non-food items account for just over half of the overall consumer price index. They include transport costs, which surged 19.42 percent on the year, and utlity costs, which were up 14.79 percent in January.

"I am certain that inflation will increase to double digits in the near term if upward utility and petroleum price expectations persist," Sampson Akligoh of Accra-based Databank Financial Services said.

The Bank of Ghana has kept its key policy rate on hold since last July after cutting it by a cumulative 500 basis points since November 2009 after inflation peaked at nearly 21 percent.

Lisa Lewin of London-based Business Monitor International expects the Bank of Ghana to keep its policy rate on hold at 13.5 percent next week, avoiding a hike that would saddle the economy with higher credit costs.

"Looking ahead to April, though, a rate hike is a distinct possibility," she added.

Ghana began producing oil last month, at its offshore Jubilee field, and says oil production will help its economy grow 12.3 percent this year, one of the fastest growth rates in Africa. The government plans to increase spending by 14 percent, according to its 2011 budget.

A strong cedi helped bring down inflation last year.

The currency has weakened since late last year, hitting a record low against the dollar this month.

The central bank was quoted last week as saying it was not worried about the currency's weakness, viewing it would counter the risk that oil exports will push the currency up to a point where cocoa and other exports become too expensive. This week, however, it intervened to support the cedi.

Source: Ghanaweb

Atwima Kwanwoma Rural Bank Makes Significant Progress

The Board of Directors of the Atwima Kwanwoma Rural Bank at Pakyi No2 in the Ashanti Region has voted GH¢320,000 as dividend for the 2009 year under review which work out to GH¢0.004 per share.

This represents an increase of 60% over the preview year’s figure of GH¢200,000; the Chairman of the Board of Directors of the Bank, Bernard Joe Appeah announced this at the Bank’s 27th Annual General Meeting held recently.

Even though the Bank’s pretax profit reduced marginally by 7% from approximately GH¢ 786,400 in 2008 to about GH¢729,900 in 2009 the Board was able to vote that amount as dividend to be paid to shareholders.

Currently, shareholders’ funds as a percentage of total deposit stand at 17.1%. According to the Board Chairman, the current share capital of GH¢364,293 is inadequate and is the only key indicator that the Bank places second in Ashanti Region and 10th among the 131 RCBs in Ghana.

He reiterated that there were possible indications that the Central Bank might increase share capital requirement RCBs to keep pace with current trends in the financial sector.

“The major challenge is how to get shareholders and potential ones to buy more shares to meet the expected share capital increase from the Bank of Ghana and to facilitate growth and expansion” he stressed.

Deposits of the Bank grew by 27.4% from about GH¢ 17, 373 200 in 2008 to a little over GH¢22, 140,400 in 2009 while the Bank’s assets also went up by 19.5% between 2008 and 2009.

The future performance of the Bank is very promising. This is because as at August 2010, pre-tax profit has increased from GH¢ 640,400 in 2009 to GH¢ 933, 395, a percentage increase of 45.7%. Cost income ratio has also reduced by 75%. Total deposits of the Bank have increased appreciably to 28% from about GH¢ 19, 216,200 in 2009 to a little over GH¢ 24,606,400 and staff morale is considerably high.

The Bank has been advised to take up technological innovations designed for the banking industry in the form of e-Zwich, Electronic Financial Analysis and Surveillance System (e FASS) and the Cheque Code line Clearing (CCC) as well as the Automated Clearing House (ACH). In addition, the Apex Bank would also migrate its star product, the Apex Link Money Transfer Product onto an ICT platform very soon to make it more efficient, fast, and safe.

In an address read on his behalf, Mr. Eric Osei-Bonsu, Managing Director of the ARB Apex Bank Limited cautioned the Board and the Bank not to relent in their efforts but to step up their deposit mobilization drive and to make credits available to people in their catchment area who are engaged in various economic activities.

Through this intervention, he said the Bank would be fulfilling its mandate in meeting the objective of RCBs engaged in financial intermediation. He said the banking business has become very competitive and risky, and with the current pace of development in ICT, Atwima Kwanwoma Rural Bank would in no doubt be assuming additional risks and take on board new challenges. According to him, to minimize risk, there was the need for effective risk management which includes an awareness or recognition of risk as an initial a risk management policy to identify, assess, monitor and control operational and credit risks among others.

He further mentioned that risk management incorporates all activities required to identify and mitigate the vulnerabilities to which the Bank may be exposed. According to him, internal controls are designed to add value and efficiency to the Bank’s operations by minimizing the incidence of irregularities and malpractices.

“There is therefore the need to strengthen your internal control mechanisms to ensure that adequate and effective measures are put in place to enhance standards and improve performance, for the attainment of the overall objectives of the Bank”, he advised.

Source: B&FT

Monday, February 14, 2011

The MasterCard Foundation and WAM Provide Scholarship Opportunities for the Sustainable Microenterprise and Development Program Ghana (SMDP-Ghana) 201

The MasterCard Foundation and WAM Provide Scholarship Opportunities for the Sustainable Microenterprise and Development Program Ghana (SMDP-Ghana) 2011

We are very pleased to announce that we will award at least 25 scholarships to the Sustainable Microenterprise and Development Program Ghana (SMDP-Ghana) 2011 which will be held March 14-25th in Accra.

Scholarship Selection Preferences:

Practitioners who have at least two years experience in the microenterprise development field

Practitioners who work in Africa.

Practitioners who work for NGO or Development Finance Institutions and policy development organizations

Women practitioners

Candidates coming from disadvantaged backgrounds, preferably from rural and resource-poor areas.

Applicants who make some level of financial contribution to tuition, room/board, and/or travel costs.

Scholarships will be awarded through a competitive application process described on the SMDP Ghana website:

Deadline for Scholarship Applications is Tuesday February 1st 2011

The SMDP Ghana is an intensive training program offering critical skills for African microfinance and enterprise development leaders. Highlights include:

· Daily plenary sessions on the latest in sustainability and inclusive microfinance, including mobile banking, social performance monitoring, and management and micro-insurance.

· Renowned professionals leading courses ranging from one day to a week long. Participants can choose courses from different tracks.

· Field visits to "Susu" savings collectors, VSLA groups, rural banks, and other microfinance institutions.

· Lasting connections with microfinance and enterprise development professionals from around the world.

Four Learning Tracks

* Microfinance Essential Skills - Two weeks

* Institutional Strengthening Part I - Risk Management for Microfinance Institutions - One week

* Institutional Strengthening Part II - Monitoring the Performance of MFIs - One week

* Community Managed Microfinance Part I - Programme Design and Implementation - One week

* Community Managed Microfinance Part II - Management Information Systems - One week

* Pro-Poor Enterprise Development: Advanced Topics - One Week

You may register for one or two weeks with full room and board on campus or as a commuter.

Venue: The GIMPA Executive Hostel, Greenhill, Accra

REGISTRATION DEADLINE: Feb. 25, 2011

Sponsored by the Carsey Institute/University of New Hampshire and Ghana Microfinance Institutions Network (GHAMFIN)

Friday, February 11, 2011

Financing urban poultry farmers: the myths and realities

Dr. (Mrs.) Irene S. Egyir (a lecturer of the University of Ghana) is the Project Coordinator of the MFCS which was motivated by her membership in the Accra Working Group on Urban and Peri-urban Agriculture) in Accra (Ghana)

The Multi-Features and Capacity-enhancing Services (MFCS) project is a micro finance and development NGO in Madina, Accra. The project was initiated in response to complaints by farmers in the city that there are too many bottlenecks to obtaining credit from the formal financial sector. A typical complaint, “We have been raising fowls for more than a decade in communities close to Accra.No bank considers us credit worthy but we tried each Christmas to raise at least 500 broilers, and then to keep 500 layers and cockerels for the rest of the year”. So, six males were given GHC1,000.00 (about USD700.00) to support their nine-week Christmas season broiler projects in December 2009. In February 2010 they completed the payment of principal and interest on schedule –a myth is broke! Immediately they received a higher amount, GHC1,500 (USD1000.00) for the year’s project. Apart from the financial service, the MFCS has linked the group to the Cooperative Department in the district and they have received pep-talks on organizing, leadership and effective financial management. It was expected that the second cycle repayment will follow the same rapid repayment of the first cycle. The reality, difficulty in sustaining repayments! The excuse, “We received our day old chicks late, so we have not been able to sell any mature chicks yet….I had to foot the funeral bills of my late relatives so I am down on cash,….my key buyer is yet to pay me so you also have to wait,… due to the rainy season the birds are dying, I am not well…, my wife has just given birth, I’ll come and see you soon, have patience with me…” Indeed, try reaching them on phone and the response is“the number you have dialed cannot be reached, …..the number is unavailable,…the mobile phone is switched off. Try visiting his home even during the dry season; the road network and surface is better experienced than described- pot holes, winding and dusty and you drive for over one hour for just a 20 km distance. Get to the house and “he has just gone out, she has traveled…”. Some experts have suggested that finance with education is what will work. A training needs assessment has been carried out by the MFCS project. Three modules on: “All lenders need to know about the urban agricultural producer”, “Getting credit, getting together” and “I want to pay back that loan so..” are being prepared. A good understanding of the borrowers’ peculiar challenges and lenders’ key bottlenecks should change attitudes, to make it easier to access and provide credit to urban agricultural producers.