Government urged to channel poverty funds to rural associations

Tumu (U/R), Dec. 9, GNA - Mr. Evans Sinkare, Executive Director of Rural Aid Action Programme (RAAP), said government's poverty alleviation fund could be productively used if it were channelled through viable financial associations in rural communities.

He said the Micro Finance and Small Loans policy designed by government was intended to alleviate poverty in these rural communities but this had not fully achieved its objectives. Mr Sinkare said such monies usually ended up in the hands of party supporters and worse of all people who did not need them. "Repayment of such monies has always remained the greatest challenge ever since the implementation of the policy." Mr. Sinkare was speaking at the graduation of the Village Savings and Loans Associations (VSLA) organised by Plan Ghana on Tuesday at Tumu in the Sissala East District of the Upper West Region.

He said the VSLA was one of the effective mechanisms that could be adopted to alleviate poverty in the deprived communities and urged government to consider supporting such associations to function effectively. He said if such associations were supported with funding, the marginalized in the society could also access the funds to help them realize their dreams and reduce poverty.

Mr. Richard Boadu, Plan Ghana Programme Area Manager, said according to the 2007 Ghana Human Development Report, about 30 per cent of people did not have access to any form of financial services. He said this did not augur well for rural economic growth and the development of the nation.

He said it was in the light of this that Plan Ghana introduced the VSLA model in rural communities to improve upon the savings habit and to mobilize funds to re-capitalize or to start new businesses in other communities. Mr Boadu said all communities in the Sissala West District and some from the Sissala East District were benefiting from the scheme directly from Plan Ghana.

Mr. Kale Cezar, Upper West Deputy Regional Minister, commended Plan Ghana and its partner RAAP for their contribution towards poverty alleviation in the region and urged them to continue to do more. He said over the years, people in the region had a problem of accessing credit from banks due to lack of collateral security. The Deputy Minister appealed to the members to see the VSLA Scheme as their own and pay their monthly commitments as well as loans to enable the scheme to grow to enrol more members.