‘Invest Common Fund in rural banks’

...to drive rural development agenda

Manager of Bawjiase Area Rural Bank (BARB) Mr. Augustus G.A Yankey says investing District Assemblies Common Fund (DACF) in rural banks within the district’s catchment area will serve as a catalyst for rural development, because it will grow more rural-based businesses and also provide significant improvement in the lives of the rural public.

Speaking to B&FT in an interview on the viability of microfinance as a tool for improved socio-economic development in rural communities, he said microfinance-based rural banking is gradually making strides in various rural communities -- especially in terms of helping to grow small- and medium-sized businesses, insisting that a push from government will make the venture more sustainable and productive.

“Instead of keeping the Common Fund in the district capitals, it would be a laudable idea for the District Assembly to invest the monies in the various rural banks operating within its catchment area. Once it is invested, the banks can turn it around for some time to support more local businesses. The money will be paid back as and when the District Assembly demands.

“By so doing, rural banks will be better-positioned to provide increased financial assistance to a large number of customers, and will ultimately push the main aim of rural banking -- which is transforming lives and businesses through rural development.

“It is one evident means by which rural folks and businesses will feel the presence and support of government,” he said.

Mr. Agoe said microfinance operations are doing a lot for the informal public and is on course with its rural empowerment agenda, a situation that is contributing to the upspringing of numerous microfinance companies in some communities.

“For me, I think microfinance is doing a lot for people in rural areas and the informal public as a whole. Bawjiase alone currently has about twelve microfinance finance institutions competing with the bank.”

Microfinance currently takes up about 80 percent of the bank’s business portfolio. The bank has 34,045 customers.

Mr. Agoe shared with B&FT how the bank has leveraged its presence to support and develop Bawjiase and its surrounding towns: “Over the years, BARB has provided financial assistance to business across various sectors. For instance, we financed most of the ‘tro-tro’ drivers who sought financial help from the bank to purchase their vehicles.

“We try to build a cordial relationship with customers, analyse their problems and give the necessary assistance and coaching that will grow their business. “In terms of corporate social responsibility, the bank spent a total of GH?10,101 on various projects as donations to organisations and institutions within the bank’s catchment area. We are also introducing ‘Obibie Kyiama’- an educational fund to support education in the community.”