Economic Contribution of Microfinance Institutions to National Growth
The role of microfinance institutions (MFIs) in the edifice of the Ghanaian financial sub-sector; and their contribution to socio-economic development and growth of the country cannot be overemphasised. In recent years, the Ghanaian economy has witnessed the formal establishment of several microfinance institutions. Connoisseurs of activities in the financial sub-sector believe the introduction of microfinance institutions is timely to fill the lending void created in the financial industry ostensibly by universal banks and other deposit-taking institutions. That is, the presence of microfinance institutions allows individuals, small- and medium size enterprises (SMEs) to access loans for sustainable operations, development and growth of their respective businesses; and to contribute their quota to the growth of the Ghanaian economy. This affirms the valuable role of microfinance services in developing and emerging free market economies such as Ghana. In Ghana, microfinance businesses witnessed significant growth in the early 2000s. Their operations helped to increase the Ghanaian banked population; they had more outlets than the main stream universal banks; and had an estimated client size of 8 million (World Bank, 2016). However, the proliferation resulted in the emergence of many new unregulated microfinance service providers. The activities of these unregulated MFIs had an adverse impact on the financial system; the latter was disrupted by the former in that, operations of the unregulated MFIs resulted in loss of savings by low-income households; and high incidence of fraud and insolvency. To stem the tide, guidelines were issued by the Bank of Ghana (BoG) in 2011 for all MFIs to be brought under a consistent regulatory framework (World Bank, 2016). Licencing and Legal Framework After their incorporation, microfinance institutions acquire provisional licence required for their operations from the Bank of Ghana. The provisionally-licenced microfinance institutions are subsequently issued with a perpetual licence by the Bank of Ghana to fully authenticate their operations in the country. Further, effective and efficient microfinance institutions are required to be active members of the Ghana Association of Microfinance Companies (GAMC). In consonance with trends emerging in many economies across the globe, the legal framework for regulating microfinance institutions in Ghana takes a tiered approach. The World Bank (2016) described the Bank of Ghana’s initiative as consistent with trends emerging in the international financial community. Activities of Specialised Deposit-taking Institutions (SDIs) including MFIs are categorised into four (4) tiers. Tier One englobes the activities of Rural and Community Banks (RCBs) and Savings and Loans Companies (S&LCs). Tier two comprises Microfinance Companies (MFCs) and Credit Unions (CUs). The former is a relatively new category introduced by the Bank of Ghana to ensure new businesses engaging in micro finance services are adequately accommodated, regulated, and supervised to ensure efficiency and effectiveness in their service delivery to customers. The activities of Credit Unions are primarily supervised by their parent association that is, the Ghana Co-Operatives Credit Unions Association while MFCs are supervised by the BoG. Money Lending Companies (MLCs) and Financial Non-Governmental Organisations (FNGOs) are found in Tier Three. The former is a new designation for businesses engaged in lending while the latter refers to organisations that were instrumental in the introduction of modern microfinance methodologies in the 1990s. In principle, tier three institutions are non-deposit-taking. However, they may take and hold compulsory savings as security against loans contracted to clients. The extent of supervision by the Bank of Ghana on MFCs tends to be stricter than on FNGOs. Persons engaged mainly in savings commonly called Susu Collectors, and those engaged in lending known as Money Lenders are found in Tier Four. Factors such as levels of risk, institutional sizes, and capacities determine licencing, registration, capital, and other requirements by the Regulator as stipulated in the Banks and Specialised Deposit-Taking Institutions Act of 2016, Act 930 (World Bank Group, 2016). Objective, Vision and Mission of MFIs Generally, the underlying objective of microfinance institutions is to provide microfinance products and services to individuals, small- and micro-enterprises. Their vision, among others, is to contribute meaningfully to Ghana’s socio-economic development and growth by becoming relevant, significant and efficient vehicle for mobilising, channelling and allocating funds to the banked and unbanked. Microfinance institutions seek to tailor their financial services to adequately meet the needs of their clients; and to become a strong force to reckon with in the financial industry. Like any other group of organisations that is well-organised and focused, microfinance institutions have a mission. That is, to provide quality, but affordable financial services to their existing and prospective clients. To achieve this objective, microfinance companies are committed to motivating their staff; adhering strictly to banking rules and regulations; becoming socially responsible; and ensuring higher returns on investment to meet the expectations of stakeholders. However, a candid analysis revealed thus far, actualisation of the foregoing through practical implementation of regulations and prudential norms remains a major challenge to many microfinance institutions across the country. Financial Products and Services The financial products of most microfinance companies can be categorised into three. These include deposits, loans and investments. The deposits may include micro-savings and special-savings; the categories of loan may include micro SME loans, personal loans, emergency loans, and micro loans, among others. The investment option available at most microfinance institutions is fixed deposits. The operations of microfinance institutions ensure individuals and businesses in the informal sector who would hitherto be excluded from the financial system gain access; and benefit equitably from the available financial resources through deposits and loan applications, among other essential services. The services of microfinance companies could be described as strategic to addressing the financial needs of the informal sector in general. Effective and well-functioning microfinance companies could contribute significantly to poverty reduction by providing the requisite services to the poor, needy and vulnerable in our various communities. It is worth-emphasising microfinance companies are primarily licenced to provide essential products and services to individuals and firms in both the formal and informal sector. However, the flexibility in accounts openings and loan applications requirements makes MFIs very attractive to most
Who is The Almighty Couple?
THE GREATEST KNOWLEDGE OF ALL BY GREG ODOGWU (CITIZEN SMITH) (Special revelation for World Teachers Day, commemorated every 5th October by the UN system to focus on “appreciating, assessing and improving the educators of the world.” World Evolution Movement educates the world.) Bonus Question: Who is The Almighty Couple? Answer: Indeed, history shall remember Peace Keepers of the Universe as the people that brought the greatest Illumination to the people of Earth. This Illumination is in the form of a New Revelation. This revelation is a Truth never known before. This truth is that The Almighty God, Creator of the Universe, is actually NOT an individual. Yes, He is not one. God is a Couple: Husband and Wife! This knowledge has never been revealed to any mortal since the beginning of time. So it has never been shared by any Religion on Earth since the beginning of the Human civilization. This knowledge is greater than anything the world has never known. This revelation is bigger than the Big Bang. It is greater than life itself. It is the knowledge of the gods. And, understanding this revelation makes you a divine being. A homo luminous. A human with light. A chosen one! The Holy Books of world religions are filled with clues as to to the person The Almighty Couple. But, nobody understood it, because it was not the time. Now we are witnesses to the Angelic Ceasefire. Because of the Peace, the time is here. The veil has been torn to pieces. Every Peace Keeper has access to the Holy Grail. The most hidden truth of all. It is written in Genesis 1:27, “God created man in His own image… male and female He created them.” This is clue! The image of God is Husband and Wife. One is the Head of the Angels, the other the head of the Humans. Together, they are the Parents of the entire Universe. The intelligent inhabitants of the Universe are in two categories: Angels and Humans. The destiny of creation is to unite these Angels and Humans in pairs of Husbands and Wives (one Angel to one Human), the same way our MAKERS are! It is only when we are united in pairs that we can proceed to KNOW what lies in ETERNITY. Without being united to our eternal partners, our Creators shall consider us as immature and childlike. That is the whole story. All the Angel Wars, and troubles on Earth and in other Dimensions (so-called Heavens) were all caused by the struggle to find an ETERNAL PAIR. This knowledge is what made the Angels call a ceasefire. But this knowledge did not come cheap. It is eternal knowledge. It is what will make you a KING when you ascend into the other higher dimensions. Let the world rejoice. The time has finally come for us to complete the second half of all dualities. Earth and Heaven. Darkness and Light. Night and Day. War and Peace. Ignorance and Knowledge. Our God is Wife and Husband. And, they shall make us Eternal Couples the way they are. One Angel to One Human! Apexnewsgh.com/Ghana Please kindly contact apexnewsgh.com on Email: apexnewsgh@gmail.com for your credible news publications.
“We can now call you ‘PROMISE DO’ President –Tongraan to President Akufo- Addo
The Paramount Chief of the Talensi Traditional Area, Tongraan Kubilsong Nalebegtang, has given the President of the Republic, Nana Addo Dankwa Akufo-Addo, the name “President Promise-Do”. According to the Tong-Rana, “Mr. President, you have heard most of our prayers, our cries and concerns already. We want to acknowledge your response to them, especially the Pwalugu Multipurpose Dam, the Bolga-Bawku-Polimakom road, which was promised to be constructed by previous regimes without any action, but is today nearing completion under your stewardship.” He noted that several other projects such as the 1-Village-1-Dam initiative, the Free Senior High School policy and the construction of its attendant infrastructure, and the construction of several road and rail projects are examples of the amount of work undertaken by President Akufo-Addo and his Government. To this end, “Mr. President, I say well done. Mr. President, I will call you ‘President Promise-Do’, because you do what you say you will. So, Mr. President, you take the name ‘President Promise-Do’ from this palace,” Tong-Rana Kubilsong Nalebegtang added. The Tong-Rana made this known on Wednesday, 7th October 2020, when President Akufo-Addo paid a courtesy call on him at his palace in Tongo, at the commencement of his 2-day working visit to the Upper East Region. With the President having visited the Ton-Rana’s palace on a “special prayer day and a day of sacrifice for Tong-Ran, which is a period of thanksgiving to God for the harvest, peace, good health and long life of Talen-Teng”, the Tong-Rana stated that “I do not know who told you or proposed this date to you, but I must say that the gods of Talen-teng and Almighty directed you to come here, particularly today, to receive your victory blessings.” Having upgraded the Bolgatanga Polytechnic into a Technical University status, Tong-Rana Kubilsong Nalebegtang expressed the appreciation of the people of Talensi, and, indeed, the Upper West Region for the work undertaken by the President and his Government to transform the country. “We know that there are quite a number of projects in mind which, very soon, in your next term, will brighten the whole of the Upper East Region, and Tongo inclusive. We, therefore, want to say that you have already cleared the way for your next term in office,” he said. The Tong-Rana continued, “Once you have entered this palace, you are the first to enter this palace in this time of the period where the political campaign has started, and, therefore, being the first to be here, you will be the first at the end of it all.” Appealing for the maintenance of the peace, unity and stability of the nation, Tong-Rana Kubilsong Nalebegtang urged President Akufo-Addo to “ensure that, as the Commander-in-Chief, you will nip in the bud all the activities of those who want to divide this country and bring disunity. Mr. President, we know that you are a peace-loving President, and you have always advocated for this. We will, therefore, pray for you to achieve all your aims.” Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen Please kindly contact apexnewsgh.com on Email: apexnewsgh@gmail.com for your credible news publications.
UER: Some residents of Bolgatanga protested with placards during President Akufo Addo’s visit to the UER
Some of the residents of Bolgatanga Municipality of the Upper East Region were seen holding placards along the Bolgatanga double roads during the President Visit to the Upper East Region. According to these residents captured by Apexnewsgh.com, the reason for their placards protest was to remind the President Akufo Addo of some of his unfulfilled promises to the people Upper East Region. MR. PRESIDENT, COMMISSION YOUR 419 AFFORDABLE HOUSING UNIT AT PUSU- NAMONG, DEAR NANA ADDO, ALLOW THE SOVEREIGN WILL OF THE MASSES TO PREVAIL ON DECEMBER 7TH, etc. However, apexnewsgh.com notice the protest exercise was characterized by only women. The President began his tour on Wednesday from the Talensi District by paying a courtesy visit to the palace of the paramount chief of the Talensi traditional area. Apexnewsgh.com/Ghana Please kindly contact apexnewsgh.com on Email: apexnewsgh@gmail.com for your credible news publications.