‘Strict regulation of microfinance sector crucial’

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• Hugh Sinclair (@MFheretic) 11 years ago

  An interesting article, and I sympathise with Mr. Afriyie. Were this the first time such trouble was brewing the issue would be easier to understand, but it is not. These microfinance crises tend to follow the same pattern. L ...
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  An interesting article, and I sympathise with Mr. Afriyie. Were this the first time such trouble was brewing the issue would be easier to understand, but it is not. These microfinance crises tend to follow the same pattern. Lack of transparency, poor regulation, foreign investors pile in to make nice profits from high interest rates, over-indebtedness reaches chronic proportions until poor people start defaulting, frauds escalate, and eventually something triggers a full collapse.
  
  What I fail to understand is why the Bank of Ghana allows this inevitable outcome. Why don't they simply look at what happened in Morroco, Bosnia, Nicaragua, India, Pakistan, Bolivia etc? Each time the regulators sit back and do too little too late, and the result is an unnecessary collapse. The news of problems in the microfinance sector of Ghana is almost daily news across the newsfeeds, and yet the final result seems inevitable, unfortunately.
  
  The one thing we can learn from the history of microfinance crises is that we learn absolutely nothing from history! Like lemmings, walking blindly off the cliff, again.

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• nana owusu ansah 11 years ago

  It very sure, for the government to come into the aid of microfinance from falling down, because, the microfinance companies has almost cast down the unemployment rate in Ghana now.

  It very sure, for the government to come into the aid of microfinance from falling down, because, the microfinance companies has almost cast down the unemployment rate in Ghana now.

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• aristide 11 years ago

  will noble dream come again?

  will noble dream come again?

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