Business News of 2014-07-09

‘Empower microfinance association to monitor members’

The Chief Executive Officer (CEO) of KKA Empire Microfinance Company in Kumasi, Mr Obed Justice Kwaku Asare, has called on the Bank of Ghana (BoG) to give the Ghana Association of Microfinance Companies (GAMC) the power to monitor the activities of microfinance companies in the country.
That, according to him, is one of the best ways of streamlining microfinance operations in the country rather than the current thread of “insanity” in the industry.
There were about 600 registered members of the GAMC across the country as of December 2013.
In an interview with the Daily Graphic in Kumasi, Mr Kwaku Asare, who doubles as the National Board Treasurer of the GAMC, said the Non-Banking Financial Institutions Act, Act 774 of Act 2008 gave the GAMC the power to sue in order to bring sanity into the microfinance industry.
He said non-banking institutions such as microfinance companies were supposed to present their weekly and monthly returns to the BoG but had failed to do so; a situation which according to him was very worrying because of its impact on the operations of the industry.
Clients’ perception
He said many microfinance companies had failed to do what he termed “Know Your Client Policy”, to educate their clients about their operations.
This, to him, had made many people perceive microfinance companies as banks and are not given the right information when it comes to the details of the industry’s operations.
He cautioned microfinance companies not just to be interested in putting up huge edifices as their operational centres and opening too many branches, but to ensure that they managed clients’ investments well.
Mr Asare called on microfinance companies to register with the GAMC.
Source: graphic.com
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