More people benefit from MASLOC
A total of GH¢29.6 million has so far been disbursed in small loans and micro-credit to over 84,000 beneficiaries across the country under the government's Micro-Finance and Small Loans Scheme.
Another GH¢54 million in applications have been approved pending disbursements to over 130,000 beneficiaries, Mr Lawrence Prempeh, Chief Executive Officer, Microfinance and Small Loans Centre (MASLOC) announced on Thursday.
Briefing the media in Accra at the meet-the-press series, Mr Prempeh said additionally, a total of GH¢6.7 million was disbursed to support 42,069 beneficiaries through pro-poor schemes of 16 ministries, departments and agencies and some private microfinance groups.
He explained that activities that were covered under the pro-poor schemes included women in entrepreneurship, micro credit enterprise, youth credit schemes, guinea fowl rearing, agro-production and agro-marketing.
Others were women in poultry, jatropha production and small-scale mining.
The scheme also supports operations of the private microfinance institutions such as the Association of Microfinance Institutions, Credit Union Association (CUA), Ghana Susu Collectors' Association and selected savings and loans companies who have been provided with funds for on-lending to their members.
Mr. Prempeh said accelerated disbursement of funds to clients started in October 2007 through nine banking groups that partnered MASLOC after the programme was launched by President John Agyekum Kufuor on September 6, 2006.
He indicated that managers had adhered to the principle of disbursing the loans purely based on merit of application and the variability of the project without recourse to one's political affiliation.
Mr. Prempeh noted that MASLOC was a self-sustaining facility with recovering rate of almost 80 per cent since there were about 450 financial extension assistants that monitored and activities of beneficiaries and ensure that they paid back the loan.
He said the target for MASLOC facilities were principally the marginalized productive poor who fell mostly within the micro, small and medium enterprises sector as well as women, youth and people with disabilities, who were given priority attention within the operations.
The cost of accessing the credit, according to the Chief Executive Officer, ranged from 10 per cent to prime rate plus 2.5 per cent per annum while the maximum tenure of the facilities was 12 months with one to three months moratorium depending on the nature of the project.
Mr Prempeh said the future of Ghana's economy was intrinsically linked to the development of a vibrant small and medium enterprise since the business environment was dominated by the micro, small and medium enterprises sector.
“The growth of our national economy will therefore to a large measure, depend on our ability to positively influence the growth of the SME sector. And in this regard, a robust microfinance sector is a prerequisite for achieving success.”
Mr Stephen Asamoah Boateng, Minister of Information and National Orientation, expressed optimism that MASLOC would still be in place even after a change in government because it was a good scheme and a critical social protection programme established by government to support various segments of the marginalized poor in the society.