Microfinance industry to consolidate recovery process in 2015

There is stability in Ghana's microfinance industry, according to the sector Association.

Operational and liquidity challenges, over the past three years, led to the collapse of some companies and depositors losing their funds.

The Ghana Association of Microfinance Companies (GAMC) however says there is stability in the microfinance industry, though the storm has not finally settled.

“In our records 2014, we wouldn't say we even lost a company and so we can say that we closed the year very well,” observed Collins Amponsah-Mensah, National Chairman of GAMC.

The turbulent period of 2012 and 2013 left over 60 firms collapsing.

GAMC has therefore been working with the Bank of Ghana to facilitate a recovery process.

Mr. Amponsah-Mensah told LuvBiz that 2015 will be a year of consolidation in training and capacity building, strengthening of institutional structures as well as encouraging share floatation, mergers and acquisitions.

The proposed establishment of a deposit security insurance scheme is also expected to protect the saving public against losing their funds in times when financial intermediaries go into distress.