GHAMFIN to Introduce Performance Benchmarks for Microfinance Institutions

Accra, Dec. 16, GNA - Ghana Micro Finance Institutions (GHAMFIN) is to publish the performance benchmarks of micro finance institutions to provide information on the performance of financial non-governmental organisations (FNGOs).

The move has become necessary because of the unwillingness of financial institutions to onlend to financial NGOs because of little knowledge about their activities.

Dr David Andah, Executive Director of GHAMFIN, who announced this at the first annual general meeting of the Association of Financial Non Governmental Organisation (ASSFIN) in Accra on Friday, expressed worry that out of about 40 FNGOs, only 10 had submitted clean 2004 data for analysis. He asked ASSFIN to encourage its members to put their houses in order through being transparent and efficient in their operations. Dr Andah said GHAMFIN was engaged in discussion with Gramen Foundation in the United States of America on the provision of guarantee to enable the NGOs to borrow from the banks for on lending. In this direction, a delegation from Gramen Foundation is expected in the first quarter of next year to assess the funds situation and finalise the deal.

Dr Andah said GHAMFIN had plans to build the capacity of micro finance institutions across board because that was the only to sustain its operations and urged ASSFIN to organise similar training programmes to enhance the capacity of its members.

Mr Stanley Attafi, Chairman of ASSFIN, said the association had established relationship with funding agencies, financial and non-bank finance institutions such as the Agricultural Development Bank (ADB), Ecobank and LeasAfric as part of efforts to link members to sources of funding for their microfinance portfolios.

He said a proposal had already been submitted for a linkage arrangement and on-lending facility from ADB. Mr Attafi announced that ASSFIN had been selected as one of the apex microfinance bodies through which funds would be channelled for their members through the government supported microfinance centre due to start full operation next year.

He said an implementation manual was being developed and the necessary modalities for accessing the facility were being worked out. Mr Attafi said since the association's launch in 2005, it had developed a peer review and self-regulation mechanism to enhance its image and put in positive light the work of the FNGOs by encouraging them to learn and institutionalise international best practices to guide their work. 16 Dec. 06