Government Agenda for
Rural/Micro Finance
Ministry of Finance and Economic Planning
Microfinance Unit
Framework
• Financial Sector Reform (FSR) program
provides the overall framework for development of
the financial sector in Ghana, including expanding
and deepening access to financial services to
underserved groups (especially rural, poor,
women, other excluded)
• Ghana Microfinance Policy (GHAMP) is intended
“to promote the delivery of efficient and
sustainable microfinance services to achieve wealth
creation and poverty reduction, within the context
of the objectives of Ghana’s poverty reduction,
growth and financial sector development
strategies.”
GHAMP Objectives
• “Create an enabling environment at the macro, meso
and micro levels that supports the operations of the sub-
sector;
• Provide avenues for the sustainable flow of funds,
adequate infrastructure and development of human
capital;
• Ensure a harmonized and coordinated sub-sector;
• Ensure an integrated and sustainable financial system
that reaches the poor;
• Facilitate activities that ensure consumer protection.”
Macro Level
• Institutional strengthening of GHAMFIN as
umbrella body for advocacy and
networking
• Institutional strengthening of Microfinance
Apex institutions (CUA, GCSCA, ASSFIN,
S&Ls), as well as ARB Apex Bank
• Policy issues:
– Improve/support legal, regulatory and
supervision framework
– Interest rates (affordability, sustainability)
Meso Level
• Deepening the ownership of GHAMP
among rural/micro finance institutions
(RMFIs) and other stakeholders
• Monitoring and performance benchmarking
• Establish/strengthen microfinance depts. In
MOFEP, BoG and MDAs
• Institutionalize Microfinance Forum
• Establish rating system
Micro Level
• Building the capacity of RMFIs, service
providers to RMFIs, and end-users
• Develop relevant training manuals, models
and approaches for training RMFIs and
end-users
• Improve efficiency in delivery of credit and
other financial services
Current Situation
• RFSP has made progress in these areas:
– Establishing ARB Apex Bank, strengthening of Rural &
Community Banks, capacity building of microfinance
institutions and end users
– Has expanded access and created platform for
accelerating outreach and sustainability
• Initiatives of RFSP need to be continued and built
upon, for example:
– Data and information gathering, monitoring
– Microfinance Support Initiative for integrated training of
RCBs and end-users in effective microfinance
methodologies
– Apex bodies: strategic planning
– Computerization, MIS
Way Forward
• Use existing programmes to continue
initiatives as far as possible, e.g.:
– EMCB-FSR; pooled fund
– SPEED II
– CBRDP, RTIMP, REP II
– MASLOC
• Additional funding will be needed
– Have requested IFAD support
– IDA, AfDB
– Bilateral donors
• Dialogue on proposed programme,
priorities and activities