Micro Finance Programme

 

Background and Goal:

ADRA Ghana’s Microfinance Programme was introduced in the year 2001 as a poverty reduction strategy to supplement the Agency’s development activities in the Ghana.

The goal of the Programme is to create increased economic opportunities and enhanced living standards for people in the low income population. The target beneficiaries are the productive poor in the urban and semi-urban communities of Ghana, who are engaged in micro and small enterprises who have no access to credit from the formal financial institutions.

 

Products:

The financial products offered are individual and group working capital loans as well as savings mobilization facilitated through universal banks; where business development services are provided as the non-financial product.

 

Average Loan Size:

The initial average loan size for individual borrowers is GH ¢300 (Three hundred Ghana Cedis); while that of a group members is GH ¢200 (Two hundred Ghana Cedis) with higher loans in subsequent cycles.

 

Training:

Clients receive 3-4 weeks pre-credit training in loan policies and procedures, group dynamics and leadership skills before the initial loans are disbursed; followed by periodic training in entrepreneurial development during the subsequent loan cycles.

 

Networks:

ADRA Ghana is an autonomous member of the ADRA International Network in 125 countries worldwide; and also subscribes to the Global Microcredit Summit based in USA. The Programme is a member of the Ghana Microfinance Institutions Network (GHAMFIN), as well as the Association of Financial Non-Governmental Organizations (FNGOs).

 

Submitted by:

Mr. Adu-Takyi Johnson