Book on microfinance and poverty reduction launched in Accra

A microfinance and poverty reduction book that traces the practice of various finance schemes across Ghana has been launched in Accra, ahead of this year’s Africa Microfinance Network (AFMIN) Conference.

The book outlines the operation of microfinance schemes in the country and stressed the need for financial inclusion through microfinance so that the unbanked population could be reached.

The eight-chapter book also showed that microfinance could help to alleviate poverty once appropriate strategies and actions were taken to reach the poor.

Mr Eric Osei-Bonsu, Managing Director, ARB Apex Bank, said there was the need to develop special products and adopt new strategies, which would help the poor and the deprived to come out of poverty.

He said despite the difficult experience, the microfinance sector had thrived engendering competition and leading most universal banking institutions to now establish micro-finance desks to meet the needs of the unbanked population.

Mr Osei-Bonsu said the book was a breakthrough and would serve as a ready source material for students, researchers and practitioners looking for examples of the Ghanaian situations.

Dr Peter Quartey, Senior Research Fellow, Institute of Statistical Social and Economic Research, said history had shown that the state had not done well in issue of allocation of credit to the poor, leading to limited successes in various schemes across the country.

He urged Government to rather facilitate and desist from getting more involved in provision of credit to the vulnerable.

Mr Asare Akufo, Managing Director HFC Bank, who launched the book, said banks must learn from the experience of microfinance institutions to assess clearly the risk profile of small, medium enterprises to reduce the default rate.

Dr Joseph Kimos Adjei, Managing Director of HFC Boafo Microfinance Services, the author of the book, said the amount of loan capital given out to the poor could affect the success of schemes.

He said researchers, students and practitioners would benefit from the book as it would serve as a rich resource and guide for the practice of microfinance in the country.

Ghana will host in October this year AMFIN conference on the theme; “Access to Financial Services: Reaching the Excluded,” to look at how to reach people in the rural areas with Microfinance.

The AFMIN is the Sub-Saharan Regional Body of country level Microfinance Networks set up to promote effective and sustainable financial services to financially engaged the poor in Africa.

Source: GNA