MASLOC assistance to entrepreneurs hits GH¢ 18 million plus

Sunyani (B/A), May 6, GNA - The Microfinance and Small Scale Loan Centre (MASLOC) has since last October made a total of GH¢ 18.3 million in direct disbursements in micro credit and small scale loans to 30,000 beneficiaries across the country.

Mr Lawrence Kwasi Prempeh, Chief Executive of the Centre, who disclosed this in Sunyani on Tuesday, said a further GH¢ 37 million had been approved pending disbursement to more than 127,000 beneficiaries.

He was speaking at a workshop on "Using the media to strengthen business advocacy", jointly organised by the Ghana Journalists Association (GJA), Business Sector Advocacy Challenge Fund (BUSAC) and KAB Governance Consult.

Participants were small and medium scale entrepreneurs and media personnel.

Mr Prempeh said MASLOC had additionally disbursed GH¢ 6.7 million to support 42,069 beneficiaries through the pro-poor schemes of 16 Ministries, Departments and Agencies (MDGs) and some private microfinance groups.

He said enterprises that benefited under those schemes included women in entrepreneurship, micro credit enterprise, youth credit schemes, guinea fowl rearing, agro processing, fish mongering and other alternative livelihood vocations.

Mr Prempeh explained that the government established the centre due to its recognition of the micro, small and medium scale enterprise as one of the principal driving forces in economic development. "The sector generates employment, helps diversify economic activity and makes a significant contribution to exports and trade", he added. Mr. Prempeh said the long term objective of MASLOC was to promote the emergence, development and growth of a sustainable and decentralized micro finance sector with grassroots participation in ownership, management and control. He said the cost of accessing the centre's credit ranged from 10 percent prime rate plus 2.5 percent per annum and that the maximum tenure of the facility was 12 months with a one to three month moratorium depending on the nature of the project. He explained that MASLOC offered three categories of loan facilities indicating that the first category offered a maximum amount of GHC 500 and approved at the regional level. The second and third categories offer between GHC 500 and GHC 1,000 as well as GHC 1000 and GHC 10,000 respectively and are approved at the head office.

Mr Prempeh stated that the disbursement of loans was done through participating financial institutions and that nine banks had partnered with MASLOC as channels of disbursement and recovery of loans from beneficiaries. He said the recovery rate was very high and impressive and expressed the hope that by the end of June this year the first beneficiaries would finish the repayment. Mr. Kwasi Afriyie Badu, Chief Executive of KAB Governance Consult and a moderator at the workshop noted that the greatest challenge the country faced was to reduce poverty. He stressed the need for financial assistance to small scale and medium entrepreneurs to enable them to expand their businesses. Mr. Bright Blewu, General Secretary of the Ghana Journalists Association appealed to beneficiaries of MASLOC to ensure that they repaid the loans in time for others to benefit. He noted that the media played a crucial role in ensuring that business entities knew the concerns and purpose of MASLOC and urged practitioners to help educate the people about the centre. 06 May 08