In an attempt to improve regulation of microfinance institutions (MFIs) in the country, the Bank of Ghana (BoG), the central bank of Ghana, recently issued new operating rules and guidelines under the Non-bank Financial Institutions Act 2008. Among those being regulated are ‘susu’ companies, which are named after a traditional, informal means to save and borrow.
Four tiers have been created with various capital requirements such as deposit-taking ‘susu’ companies, which now must hold an initial minimum paid-up capital of GHS 100,000 (equivalent to USD 65,220) for each unit office. Non-deposit-taking financial NGOs shall maintain a minimum paid-up capital of GHS 60,000 (equivalent to USD 39,132) in addition to a gearing ratio not exceeding eight times their capital. However, there shall be no minimum capital requirement for an individual ‘susu’ collector or money-lender.
The US-based nonprofit Microfinance Information Exchange (MIX) reports that 55 MFIs in Ghana had an aggregate loan portfolio of USD 132 million as of December 2009.
By Ashim Kar, Research Associate
Sources and Additional Resources:
Joy online news story, “Bank of Ghana out with new licensing regime to regulate
microfinance industry”, http://news.myjoyonline.com/finance/201107/69639.asp
Microcapital.org story, July 14, 2011, “MICROCAPITAL BRIEF: Defaults, Questionable Disbursements at Microfinance and Small Loans Centre (MASLOC) Slow Microfinance in Ghana”, https://www.microcapital.org/microcapital-brief-defaults-questionable-disbursements-at-microfinance-and-small-loans-centre-masloc-slow-microfinance-in-ghana/
Microcapital.org story, September 2, 2011, “MICROCAPITAL BRIEF: Incofin Lends $9m to Microfinance Institutions (MFIs) PRIDE Tanzania; LAPO of Nigeria; Sinapi Aba Trust, FASL of Ghana”, https://www.microcapital.org/microcapital-brief-incofin-lends-9m-to-microfinance-institutions-mfis-pride-tanzania-lapo-of-nigeria-sinapi-aba-trust-fasl-of-ghana/
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