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30.04.2015 Business & Finance

Susu collectors develop preposition for effective regulation of sector

By Luv News | Kofi Adu Domfeh
Susu collectors develop preposition for effective regulation of sector
LISTEN APR 30, 2015

The Ghana Cooperative Susu Collectors Association (GCSCA) has observed an improvement in the control of clients’ savings since the Bank of Ghana started implementing new regulations for operators.

Activities of susu collectors and enterprises fall under tier four of the new licensing regime.

General Secretary of the Association, Obed Yaw Asamany, says there are over 500 registered members, out of which 363 have been issued with the Bank of Ghana’s operating license.

According to him, the sector is surviving competition based on clients’ trust and flexibility service delivery.

“In the various districts and communities, they are scattered around and they provide the financial intermediary services to the public... the market women appreciate the work they do and it’s very convenient; they take banking to the doorstep of the non-banked in the population,” he stated.

Traditional susu collectors have in years past provided an informal means for Ghanaians to save and access credit, mostly serving low-income earners.

The industry has however been fraught with fraud and other illegalities as available statistics indicate about 69 percent of susu collectors are not registered.

The GCSCA has therefore intensified capacity building of members to deliver efficient and affordable financial services to the non-banked.

The Association is also receiving support from the Business Sector Advocacy Challenge (BUSAC) Fund to undertake a stakeholder’ consultative process to promote a broadened regulatory framework for the susu sector.

Project Consultant, Felix Quansah says the security of clients’ savings is of paramount interest in the process.

“GCSCA was able to secure the mandate of Bank of Ghana to do self-regulation; however this mandate did not extend compliance, enforcement and sanction, so the effectiveness of the self-regulation is constrained,” he observed.

The consultative process is therefore aimed to put together a proposition for consideration by the Bank of Ghana for incorporation into the regulatory framework.

The first consultative engagement, involving the Bank of Ghana, the Ghana Revenue Authority, local assembly, the susu collectors and the savings public was held in Kumasi.

The Association is hopeful a final proposal to the Bank of Ghana will be ready before end of year.