Government Agenda for Rural/Micro Finance

1
Government Agenda for Rural/Micro Finance

• Ministry of Finance and Economic Planning
• Microfinance Unit

2
Framework

• Financial Sector Reform (FSR) program provides
  the overall framework for development of the
  financial sector in Ghana, including expanding
  and deepening access to financial services to
  underserved groups (especially rural, poor,
  women, other excluded)
• Ghana Microfinance Policy (GHAMP) is intended to
  promote the delivery of efficient and sustainable
  microfinance services to achieve wealth creation
  and poverty reduction, within the context of the
  objectives of Ghanas poverty reduction, growth
  and financial sector development strategies.

3
GHAMP Objectives

• Create an enabling environment at the macro,
  meso and micro levels that supports the
  operations of the sub-sector
• Provide avenues for the sustainable flow of
  funds, adequate infrastructure and development of
  human capital
• Ensure a harmonized and coordinated sub-sector
• Ensure an integrated and sustainable financial
  system that reaches the poor
• Facilitate activities that ensure consumer
  protection.

4
Macro Level

• Institutional strengthening of GHAMFIN as
  umbrella body for advocacy and networking
• Institutional strengthening of Microfinance Apex
  institutions (CUA, GCSCA, ASSFIN, SLs), as well
  as ARB Apex Bank
• Policy issues
• Improve/support legal, regulatory and supervision
  framework
• Interest rates (affordability, sustainability)

5
Meso Level

• Deepening the ownership of GHAMP among
  rural/micro finance institutions (RMFIs) and
  other stakeholders
• Monitoring and performance benchmarking
• Establish/strengthen microfinance depts. In
  MOFEP, BoG and MDAs
• Institutionalize Microfinance Forum
• Establish rating system

6
Micro Level

• Building the capacity of RMFIs, service providers
  to RMFIs, and end-users
• Develop relevant training manuals, models and
  approaches for training RMFIs and end-users
• Improve efficiency in delivery of credit and
  other financial services

7
Current Situation

• RFSP has made progress in these areas
• Establishing ARB Apex Bank, strengthening of
  Rural Community Banks, capacity building of
  microfinance institutions and end users
• Has expanded access and created platform for
  accelerating outreach and sustainability
• Initiatives of RFSP need to be continued and
  built upon, for example
• Data and information gathering, monitoring
• Microfinance Support Initiative for integrated
  training of RCBs and end-users in effective
  microfinance methodologies
• Apex bodies strategic planning
• Computerization, MIS

8
Way Forward

• Use existing programmes to continue initiatives
  as far as possible, e.g.
• EMCB-FSR pooled fund
• SPEED II
• CBRDP, RTIMP, REP II
• MASLOC
• Additional funding will be needed
• Have requested IFAD support
• IDA, AfDB
• Bilateral donors
• Dialogue on proposed programme, priorities and
  activities