BoG Works To Sanitise Microfinance Sector

Dr Ernest Addison – Governor BoG

The Bank of Ghana (BoG) has disclosed that it’s taking steps to address challenges in the country’s microfinance sector.

A release issued and signed by Caroline Otoo, Secretary of the Central Bank, said “the Bank has been monitoring Microfinance Institutions (MFIs) through offsite surveillance and onsite examination, and has also held a number of meetings with the shareholders and management of the affected institutions.”

“Together with the government, we are working on a comprehensive reform programme to address the challenges in the sector and strengthen regulatory and supervisory oversight.

For the avoidance of doubt, the list of names of licensed MFIs in general compliance with Bank of Ghana’s guidelines has been attached.”

The microfinance sector has had its fair share of challenges in recent times.

It would be recalled that the scandal involving the DKM Diamond Microfinance Company, God is Love, and Jastar Motors, among others, made the challenges more pronounced.

In the process, some victims were said to have committed suicide in the Brong Ahafo Region after several months of failed efforts to get back their investments.

A number of aggrieved investors hit the streets of the Ho capital of the Volta Region sometime back to demonstrate and demand their monies from the Little Drop Investment Club, JODEQ, Clear Image Investments Ltd., Devine Rain and Royal Foundation, among others.

Prior to these, the licences of 70 microfinance companies were revoked.

More recently, news of the re-emergence of the afore-mentioned scandals appear to be rearing their ugly heads in Accra and other parts of the country, which call for circumspection.

By Samuel Boadi