Association of Small Scale Industries goes into “Susu"

Metal molding worshop in Kumasi. © EnterpriseAfrik

The Association for Small-scale Industries (ASSI) is developing the mechanism for the implementation of a “Susu Scheme” to augment the financial base and businesses of members.

The Scheme, a collaborative work between ASSI and Synovus Financial Corporation of the Netherlands (SNV), would provide credit facilities for small-scale industries with a flexible loan recovery rate.

In addition, the SNV would give technical assistance to the industries in the areas of Budgeting, Business Risk Management and Analysis, Marketing, Packaging and Organizational Development as well as Product Development.

Mr Kwame Buor, Ashanti Regional Chairman of the Association, made this known at the inauguration of the Asante Akim North Municipality branch of the Association at Konongo.

He expressed worry at the high interest on loans charged by the banking institutions, saying the situation had over the years led to the collapse of many small-scale industries.

Mr Buor said he was optimistic that, the Scheme would eventually alleviate the challenges small-scale industries go through as they seek credit facilities to expand and also sustain their businesses.

He appealed to members to be receptive to new ideas in coming out with innovative products to facilitate their marketability on the world market.

He appealed to the decentralized assemblies to support small-scale industries in organizing Business Fairs in their areas to market their products.

Mr Obeng Mireku, the Municipal Chairman of the Association, called on all small-scale entrepreneurs to join the Association to help streamline their activities.

This would also allow them to access credit facilities with less difficulty whilst benefitting from the exchange of ideas.**


Source: Ghana News Agency

Bank of Ghana receives 300 applications for Microfinance Operations

The Bank of Ghana has received over 300 applications from firms seeking to operate under the second tier of the regulated microfinance institutions.

Regulated activities under the Non-bank Financial Institutions Act 2008, increased from a single tier to four tiers, to include Susu companies, Susu collectors, money lenders and Financial NGOs.

Susu companies taking deposits and making profits are to operate under the second tier of regulated regime, which was expected to take effect from January 2012.

Such companies are to hold an initial minimum paid-up capital of not less than Gh¢100,000.00 for one unit office.

Franklin Belnye, Director, Banking Supervision Department, Bank of Ghana says issuance of licensing should begin by the end of this quarter, when processing of applications is concluded.

“The licensing process is going to be in two steps; the provisional process and the final license. The provisional process allows us to see that your position is feasible, the business can operate but we need to know more about the people behind the company; we have to do due diligence checks on them…after that only can we issue the final license”, he told Luv Biz Report at the maiden Annual General Meeting of the Ghana Association of Microfinance Companies (GAMC) – Northern Sector.

The AGM was on the theme: “The Era of Microfinance Regulations in Ghana, Prospect and Challenges.

The Association is recognized by the Bank of Ghana as an umbrella body for second tier microfinance operators, to ease dissemination of policies and programmes and instill sanity in the industry.

National Board Chairman, Collins Amponsah-Mensah, says the regulation is enriching the operations of the sector “because the regulation comes with conditions and we’re all putting our systems in place in a way that we’ll be able to qualify for the license from the regulator”.

The Association is intensifying its outreach programme to register more microfinance firms to obtain the requisite license to operate.

Source: myjoyonline.com

MicroEnsure Ghana to launch Credit Health Insurance for Microfinance clients

Traders in a market in Accra. © EnterpriseAfrik

The Ghanaian branch of MicroEnsure, a UK-based subsidiary of nonprofit Opportunity International that serves as a microinsurance intermediary, has announced plans to offer credit health insurance to microfinance clients in Ghana.

The product will enable MicroEnsure to cover weekly microcredit repayments in the event that the borrower is admitted to the hospital during the loan term.

Clients will need to present proof of admission and discharge from a recognized inpatient hospital in order to file a claim. The cost of the coverage will start at USD 0.25 per month and will cover loan payments for any health condition for any amount of time.

According to Eugene Adogla, director of operations in Ghana, MicroEnsure expects to pay hundreds of claims that range between USD 30 and USD 60 each month. Fiona Laryea, general manager of MicroEnsure in Ghana, stated that MicroEnsure Ghana also hopes to extend coverage to clients’ families.

Two unnamed microfinance institution (MFI) partners of MicroEnsure Ghana have signed up for the new product, and more organizations have reportedly expressed interest.

MicroEnsure serves approximately 3.5 million poor clients in Ghana, India, Bangladesh, Mozambique, Malawi, the Philippines, Tanzania and Kenya as of 2011.

Source: microcapital.org