Congratulations to Opportunity International Savings and Loans Ltd for 20 years of service in #Ghana! As one of the country’s first financial institutions dedicated to providing financial and non-financial services to underserved communities, the celebration marks over GHS 3 Billion in total loans disbursed and over 668,000 people reached over the 2 decades.
Last week, a delegation of representatives from across the Opportunity International global network visited some of the incredible projects lead by OISL - building capacity for smallholder farmers, training new skills for street porters, and investing in local schools. For us, financing doesn't stop with a loan - and our partners in Ghana are dedicated to ensuring financial inclusion and financial health for all Ghanaians.
We’re proud to have supported the institution since the very beginning, and look forward to creating even greater impact in the future!
#financialinclusion#impact#economicdevelopment#collaboration
Why is there a need for Partial Credit Guarantees (PCGs) in Ghana?
In today's rapidly evolving global economy, access to affordable credit plays a critical role in promoting economic growth and empowering individuals and businesses. However, in emerging markets like Ghana, limited access to credit remains a significant challenge, hindering entrepreneurship and stifling economic progress.
This is where Partial Credit Guarantees (PCGs) can make a significant impact. PCGs act as a risk mitigation tool, encouraging financial institutions to extend credit to small and medium-sized enterprises (SMEs), first-time borrowers, and underserved segments of the population. By providing a guarantee on a portion of the loan, PCGs help reduce the inherent risks associated with lending, making it more attractive for financial institutions to provide credit to those who need it the most.
The need for PCGs in Ghana is multifaceted. Firstly, PCGs facilitate financial inclusion by broadening access to credit for previously underserved individuals and businesses. This, in turn, leads to job creation, increased productivity, and poverty reduction. Secondly, PCGs promote entrepreneurship and innovation by offering aspiring entrepreneurs the opportunity to obtain funding to kickstart their ventures. Additionally, PCGs encourage banks and other financial institutions to venture into lending to SMEs, which are the backbone of any thriving economy.
DBG Guarantee Limited aims to promote an inclusive economic growth in Ghana by de-risking lending, facilitating access to credit and empower individuals and businesses to contribute to the country's development.
#Anticipate#DBG#DBGGuarantee#FinancialInclusion#Entrepreneurship#SMEs#GhanaianEconomy#EconomicEmpowerment#InclusiveGrowth#Finance#EconomicDevelopment#Ghana#PCGs#InvestmentDevelopment Bank Ghana
Conditions for government/donor funding programs l/schemes to succeed
1. Should be catalytic in nature (unlock other funding)
2. Should take higher risk with lower return that others can’t
3. Should meet the needs of businesses and not the needs of the govt
4. Must be longer in maturity
5. Must explore equity options to recycle the funds
See Ghana👇🏿
From personal experience and through research Givemore Maguju, FMVA®, Crowdfunding fails in Zimbabwe and probably Africa as a whole because most of the informal people that start these crowd funding projects are either unskilled or Scammers or there will be a very good projects but in the end, people fail to deposit there required amounts in the crowdfund. This is because most of us Africans Lack the patience to actually wait for a project to materialize and start to bring returns, hence they opt for "mikando" which provides short-term financial relief but also leaves the person in debt to be paid off.
Africans have been victims to scams, people claiming to be business gurus who in the end run away with people's money after the funds are deposited in the crowd fund hence as Africans we see it better to do a small "mukando" with relatives and friends which requires less money and won't stress much when the money is stolen as it is with people we know and personally trust.
All in all, we need Financial education as Africans, on the long term benefits of starting a project which will bring income and financial relief, because mostly we seek for these "mikando" when we have financial issues at hand that need to be solve. We lack the idea of long-term goals and benefits from actually starting projects. We need education on legally binding contracts and the involvement of insurance Companies to protect our crowd fund from scammers. Probably have a board that control and update participants on the progress and developments which is appointed by the participants and not just blindly trust a group of people because they have a very good idea on paper.
I was actually part of a crowd fund group that wanted to venture into real estate. The numbers were good on paper and there plan was actually solid and practical as it had legally binding contracts to protect people's funds, and after all real estate is just liquarative, but in the end, we are Africans, and money is hard to come across, and we lack trust. Very few people ended up participating. The amount was less than expected by more than half. The project failed to materialize because basically we didn't understand the extent of protection contracts provided and lacked the patience to wait for the income to actually start to grow so we could use it.
Crowd Funding is actually a good way to start projects with small capital, it helps reach the end goal with little to no resources. Thank you for bringing this up. Its really a good topic which can empower youths and other people out there who have big dreams but lack capital. Just find someone with same idea and goals, and start your fund pooling. Through snowballing, that person can even connect you with other people with the same ambitions and in no time, you might end up with a very good and efficient team to start a company with.
#EducateAfrica#FinancialLiteracy#empowertheyouth
The Power of Pooling Funds Together!
Africa is home to thousands of informal savings groups known as mikando or stokvel.
People who are part of these informal savings groups contribute money in rotation, allowing participants lump sums for family needs at specific intervals.
Most African parents have sent their children to school through the help of these informal savings groups.
While these stokvel groups are really helpful among African communities, their role in creating wealth for the participants is questionable.
In my view, there is no economic value being created. Most people have been in these informal groups for years and their financial well-being hasn't changed at all. They still face the same financial challenges they have always been faced with before.
I think there is need to shift attention from the mentality of just getting by to a mentality focused on creating long-term wealth through business or entrepreneurship.
If participants of informal savings groups could pool resources together, and start companies or income generating projects, their wealth would increase exponentially over time.
Let's take for instance, OK Zimbabwe is not owned by a single person. It is owned by both retail and institutional investors - i.e. individuals and companies who provided OK Zimbabwe with money in exchange for equity or shares.
Individuals and companies who bought substantial amounts of shares when OK Zimbabwe went public years ago, they are worth a fortune today. And as OK Zimbabwe grows and succeeds so are these shareholders.
Now my question is; what stops these informal savings groups from doing the same?
Capital is a challenge when you try to undertake big projects alone. When people come together and pool resources, it's easier and scaling up is much faster.
What do you think?
#crowdfunding#capital#capitalraising#angelinvestor#investor
The Power of Pooling Funds Together!
Africa is home to thousands of informal savings groups known as mikando or stokvel.
People who are part of these informal savings groups contribute money in rotation, allowing participants lump sums for family needs at specific intervals.
Most African parents have sent their children to school through the help of these informal savings groups.
While these stokvel groups are really helpful among African communities, their role in creating wealth for the participants is questionable.
In my view, there is no economic value being created. Most people have been in these informal groups for years and their financial well-being hasn't changed at all. They still face the same financial challenges they have always been faced with before.
I think there is need to shift attention from the mentality of just getting by to a mentality focused on creating long-term wealth through business or entrepreneurship.
If participants of informal savings groups could pool resources together, and start companies or income generating projects, their wealth would increase exponentially over time.
Let's take for instance, OK Zimbabwe is not owned by a single person. It is owned by both retail and institutional investors - i.e. individuals and companies who provided OK Zimbabwe with money in exchange for equity or shares.
Individuals and companies who bought substantial amounts of shares when OK Zimbabwe went public years ago, they are worth a fortune today. And as OK Zimbabwe grows and succeeds so are these shareholders.
Now my question is; what stops these informal savings groups from doing the same?
Capital is a challenge when you try to undertake big projects alone. When people come together and pool resources, it's easier and scaling up is much faster.
What do you think?
#crowdfunding#capital#capitalraising#angelinvestor#investor
M-Pensa Impact Development is excited to share our collaboration with FSD Kenya, where we deep dived into a more comprehensive assessment of financial inclusion, extending beyond transaction accounts to encompass various financial products, and explored new financial inclusion indicators.
The recently published paper introduces innovative indices that measure the depth of financial inclusion in Kenya. While acknowledging the remarkable progress achieved, particularly with the rise of mobile money, our study brings to light a critical concern. Despite overall progress, certain segments of the population continue to face exclusion, exacerbating inequalities and hampering their participation in the broader economy.
The study showcases the significant advancements in financial inclusion, especially with the widespread adoption of mobile money. However, it sheds light on the persistent exclusion of specific groups, contributing to deepening disparities with far-reaching implications.
Dive into the complexities of Kenya's financial inclusion journey and gain valuable insights by accessing the full paper here: https://rb.gy/yahtxo
Our findings underscore the pressing need to address these persistent inequalities and bridge the existing gaps, ensuring that no one is left behind.
#InclusiveFinance#FinancialInclusion#FinAccess#HouseholdSurveys
In order to develop a more meaningful measure of financial inclusion, FSD Kenya collaborated with M-Pensa Impact & Development Services Impact Development to explore new indicators that measure individuals’ use of a range of financial products and services beyond transaction accounts. The indexes proposed in a paper assess the extent to which Kenyans are not just able to transact, but also to save, borrow, be insured and have a pension.
The study reveals that, although financial inclusion has made remarkable progress for many population segments, especially with the introduction of mobile money, certain groups remain substantially excluded, contributing to deepen the level of exclusion and inequality with serious implications for their participation in the wider economy. Among other things, it emphasises the urgent need to address these persistent inequalities and to reach those who are still excluded.
Gain valuable insights into the complexities of Kenya’s financial inclusion journey here : https://rb.gy/yahtxo#InclusiveFinance#FinAccess#HouseholdSurveys
Unlocking Financial Literacy: Understanding Loan Terms and Conditions in Ghana
Are you planning to take a loan in Ghana? Do you understand the terms and conditions that come with it?
At CedisPay, we want to empower you with knowledge! In this post, we'll break down the key terminology you need to know when taking a loan in Ghana.
Understanding Loan Terms and Conditions: A Guide to Key Terminology
- Interest Rate
- Annual Percentage Rate (APR)
- Loan Tenure
- Monthly Installments
- Collateral
- Credit Score
- Loan Amount
- Repayment Schedule
Stay informed and avoid hidden surprises!
Join our community to learn more:
LinkedIn: https://lnkd.in/gENKNW2H
Facebook: https://lnkd.in/gCUe4RAg
Visit our website: https://cedispay.com.gh
Contact us: [+233 244680960], [+233 59 574 1614], or +23355 238 6593
Next up: A Step-by-Step Guide to Taking a Loan in Ghana
#FinancialLiteracy#LoanTerms#Conditions#Ghana#CedisPay#ResponsibleLending#EmpowermentThroughEducation
Supported by the World Bank and other developmental partners, the Ministry of Finance launched the Development Bank Ghana (DBG), setting a new course with its groundbreaking products and services. DBG, as a key development finance institution, is dedicated to reshaping Ghana’s economic framework, with a sharp focus on enhancing credit availability, especially in private sector financing. It targets crucial areas such as manufacturing, agriculture, and rapidly expanding service industries like tourism, health, education, and IT. DBG is joining forces with existing retail financial players, including banks and non-bank financial institutions (SDIs).
Beyond offering credit lines, DBG is setting up a subsidiary- DBG Guarantee Limited, the institution is poised to introduce a partial credit guarantee scheme, partnering with participating financial institutions (PFIs). This initiative is designed to reduce lending risks to specific groups and sectors, particularly emphasizing support for private sector finance, women, and first-time borrowers.
#Anticipate#DBGGuarantee#DevelopmentBankGhana#EconomicGrowth#FinancialInnovation#PrivateSectorEmpowermentThe World BankDevelopment Bank GhanaCarlos VicenteK Duker#CreditExpansion#GhanaEconomyBoost#FinanceSectorEvolution#AgriculturalFinancing#IndustrialGrowth#ServiceSectorAdvancement
#FinancialLiteracyMonth#Savings - There are many ways to define savings and my preferred definition is deliberately setting aside money from my disposable income for future use or for emergencies before spending my income.
One definition that we have grown with in our community and which we must avoid is savings defined as the surplus you get after you have spent and paid others. This has kept so many in a cycle of paycheck to paycheck and we must deliberately save first.
Commonly known as pay yourself first, this ideology was used by the richest man in Babylon in his rules and number 1 rule is "Start thy purse to fattening"
In our current times the 'purses" we have are digital and easily accessible to most people. Common areas to save your money and flatten it includes; High interest saving accounts, Money Market Funds, Treasury bills.
Some tips on savings;
1. Make it's regular and fixed/set percentage of income.
2. Automate the deposit to your 'purse'
3. Define upfront the purpose of the savings.
Kenya Gross Savings Rate was measured at 12.1 as at Dec 2022 by CEIC DATA , which is below Africa’s average of 17 percent and way below our neighbours Uganda and Tanzania who havecrossed the 20 percent mark, signifying a more advanced savings culture.
Photo Source: World Development Indicators, World Bank
|A passionate Financial Literacy Advocate dedicated to empowering individuals and young people with the tools and knowledge to enhance their financial wellbeing| Chartered Banker| Chartered Global Investment Analyst|
Empowering the Masses: The Importance of Financial Literacy in Ghana
Are you confident in your knowledge of investments? 🤔🤔
Do you know the principles of Treasury bills and how they work? 😊😊
These are important questions to ask yourself, especially if you're considering investing your hard-earned money.
Recently, I witnessed a middle-aged woman at the bank struggling to understand the principles of Treasury bills.
She had genuine concerns about the rates quoted on the notice board, the Domestic Debt Exchange programme, and the stability of her investment rate over time.
It was heartening to see the customer service personnel take the time to explain these principles to her, but it also highlighted the need for greater financial literacy in Ghana.
As someone with a basic understanding of investments, I see and hear daily questions around investment that tell me we need to do more to empower the masses. When people are empowered with knowledge, they ask for more, and service providers like banks tend to give their best.
So, let's start a wider conversation about educating people on basic investment principles and processes.
Check out my Youtube channel, Patrick TV GH, where I've been sharing my own campaign for the past seven years.
Let's work together to empower ourselves and our communities with the knowledge we need to make informed financial decisions.
Join the conversation with the hashtags #FinancialLiteracyGhana#InvestmentPrinciples#EmpoweringTheMasses
For God, country, and humanity, let's make financial literacy a priority in Ghana.
--
1moThis is a great!