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Ghana: Provide Incentives to Extend Microfinance Services to Rural Areas

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The Ghana Microfinance Institutions Network (GHAMFIN) is pushing for the provision of incentives for microfinance service providers to extend their services to rural areas.

GHAMFIN, which comprises the apex bodies of different microfinance actors, posits that the current microfinance landscape is  largely concentrated in Accra and Kumasi, hence the need to extend services to the rural areas to deepen financial inclusion.

To this end, the network has initiated discussions with the Ministry of Finance, to initiate a policy that will make provisions for incentives for companies who are ready to move out of their comfort zones and venture into areas that are predominantly not viable.

The Executive Director of GHAMFIN, Mr Yaw Gyamfi told the Daily Graphic that extending microfinance services to the urban areas would help consolidate moves to deepen financial inclusion in the country.

“When you look at most of our institutions, they are located in the urban areas. But we are preaching financial inclusion so what do we do.? We have had discussions with the Ministry of Finance to look at policies that will look at providing some incentives for companies that will move out of their comfort zone, because the monies are in the urban areas so to tell somebody to go into an area that is primarily not too viable, then there must be something at stake,” he said.

Mr Gyamfi said GHAMFIN was looking at having these incentives in place by first quarter 2017, adding that although it was feasible, “we need to work hard towards it. For us, we have to start working on our own and make sure that we have something running by that time.”

For more on this story visit the following link: Ghana: Provide Incentives to Extend Microfinance Services to Rural Areas

Source: Graphic Online

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