BoG steps up ‘susu’ regulation

The Bank of Ghana says as part of its plans to build the capacity of ‘susu’ collectors in the country there will be a quarterly budget for the Ghana Cooperation Susu Collectors Association (GCSCA), the regulatory body of the sector, to enable it effectively monitor and supervise operators.

“There is a need to bring binding rules to regulate the sector and revoke the licenses of violators, so BoG intends building the capacity of GCSCA to enable them effectively monitor and supervise operators,” Dr. Yaw Gyimah Larbi, Head of the Micro-finance institutions have established themselves and are competing with other financial institutions like the banks and savings and loan companies; but need to operate transparently.

“BoG will continue to educate operators on the punitive measures any unlicensed operator will face when it violates the law.” Dr. Larbi was speaking at the 8th Annual General Meeting of the Ghana Cooperative Susu Collectors Association in Accra under the theme “Developing Susu Collection in Ghana through Effective Monitoring”.

He said GCSCA was approved by BoG two years ago to register all members and regularize their operations, adding that BoG believes partnership between the two institutions will go a long way to curb the growing unemployment rate in the country.

Mr. E.E Aboagye-Mensah, President of GCSCA, said the board is pushing for the recognition of GCSCA as an apex body for susu collectors in the country by the Ministry of Finance and the Central Bank.

According to him, the Association has brought sanity into the susu collection business through effective monitoring and supervision, adding that the Association has organized training programmes for members in collaboration with the Ministry of Finance and Economic Planning (MOFEP).

He commended the efforts of MOFEP, the Banking Supervision Department of BoG and the Ghana Micro-finance Institutions Network for supporting the susu business. “Management approached BoG for the licencing of members and now about 247 memebers have been licenced – with the second batch of 180 members yet to be issued with their BoG operational licence.”

Mr. Yaw Obed Asmany, General Secretary of GCSCA, said despite budgetary constraints and other challenges the Association was able to achieve about 80 percent of the targets set in the work-plan for the year under review.

He said the Association will vigorously embark on networking and building linkages with governmental institutions to sell their services as well as attract technical assistance and sponsorship.