Future Looks Gloomy for Ghana’s Microfinance Institutions
THE future looks gloomy for Ghana’s microfinance institutions as the country’s central bank cracks the whip on fly-night lenders that have mushroomed across the country.
However, such moves could also have an impact on genuine leaders who are already bearing the brunt of members of the public tarring the sector with the same brush.
Among plans to eliminate illicit lenders, the Bank of Governor (BoG) has hiked the minimum paid up capital for microfinance companies and money lending companies from over US$130 000 (GH500 000) and $78 900 respectively to US$800 000.
There are concerns the hike is too much considering the country’s precarious economic performance.