Ghanaian population is averagely 24 million. The economy is denominated predominantly by informer sector. The informer sector is considered the engine of growth. Though the country is rich with natural resources, majority of its work force do not have access to financial support and even lacks the necessary collateral to secure any financial assistance.
Even though, there are number of savings and loans as well as micro finance institution in the country, most of them are crowded only in the cities scrum bling over the few high net worth Ghanaians and aslo competing aggressive with the Traditional Banks leaving their core business activities for which they were established while the majority of the Ghanaian populace still remained abject poverty and cannot have access to financial support.
Ghana is often described as one of West Africa’s development success stories: the country’s growth and poverty reduction rates are among the very best in the region. Since 1991, the country’s poverty rate has dropped by almost half. Despite these many successes, however, Ghana’s rural population still faces some challenges.
Poverty rates in the country are not evenly dispersed. The most recent estimates suggest that roughly 40 per cent of rural people are poor, while only 10 per cent of the urban population lives below the poverty line which forms 28.5% of the population living in poverty.
The agriculture sector is the country’s major engine of economic growth, making up nearly a third of the country’s total GDP and employing more than half of Ghana’s workforce. Most of Ghana’s agricultural output is produced through traditional farming methods on rainfed, smallholder farms averaging a little over one hectare in size. Women play an important role in all aspects of agriculture, from planning and decision-making, to harvesting and processing.
Rural poverty is particularly widespread in the dry savannah region that covers roughly two thirds of Ghana’s northern territory. Unlike the south, where there are two growing seasons, the northern plains are drought-prone and people have fewer economic opportunities. While Ghana’s overall poverty rate has declined, the three regions in the north have only seen marginal decreases. Poverty rates there tend to be two to three times the national average, and chronic food insecurity remains a critical challenge.
Small-scale farmers have very limited access to vital technologies such as irrigation, fertilizer and improved seed that could substantially increase yields. Additionally, population pressure and shorter fallow periods lead to soil erosion, loss of fertility and land degradation – all of which pose a long-term threat to farmers’ livelihoods and incomes.
Lack of infrastructure is also a particular concern for poor rural people. Farmers have limited access to the equipment and facilities needed for storing and processing their products, while poorly functioning markets for agricultural outputs and a lack of financial services constrain livelihoods. Rural populations also tend to have limited access to basic social services, safe water, permanent roads, and electric and telephone service.
Poor nutrition, lack of proper sanitation facilities, very poor rural housing conditions that lack anti malaria bed nets are clear manifestations of faces of poverty that rob some Ghanaians of their lives.
Initial roll out of ASA Ghana operations have been very successful. ASA Ghana was incorporated on June 2007 and issued with a Certificate to Commence Business on 5th June 2007 but officially started operations in February 2008 due to operational challenges. Currently ASA Ghana is being managed by a team of well experienced microfinance expert from ASA Bangladesh. ASA Ghana has a strong management with over 15 years of experience in ASA operating model.
ASA Savings & Loans, Company profile:
ASA savings & Loans is among the group of ASA international a micro finance organization, incorporated in Ghana as Savings and Loans and obtained its (license certificate NO.0009) to operate under the non-bank financial institutions with its head office at Busia Junction (Off Odorkor- Mallam Road). The company first operated as micro finance under the named ASA GHANA with over 54 branches across the country.
The main focus of ASA Savings & loans is to provide financial services to assist people in the informal sector that are constraints with financial assistance either to establish their own business or to expand their existing business as well as to meet their financial obligation. Customers focus will be the key tenant of ASA SAVINGS AND LOANS philosophy.
ASA Saving and Loans Banking activities shall deal with large number of customers, such as individuals, Group of Individuals, Societies, Associations, Clubs, Schools, Churches, Enterprise, and Corporate Bodies.
ASA savings and loans banking services shall include current account, savings account, investment, funds transfers, mobile and electronic banking .
|Loan duration||6 Month||12 Month||10 Month|
|First Celing Loan||GHC 300-400||GHC 300-500||GHC 1000-1500|
|Rate of Interest||18%||35%||30%|
|Number of Installment||24||45||10|
|Increement per Cycle||GHC 100-200||GHC 200-300||GHC 300-500|
|First Loan disbursement||After 4 Weeks||After 4 Weeks||After 4 Weeks|
|First Installment Start||After 2 Weeks||After 2 Weeks||After 1 month|
|Mode of repayment||Weekly||Weekly||Monthly|
|Provision of Loan risk||1%||1%||1%|
|Provision of Security Deposit||10% for 1st cycle 15% for 2nd cycle||10% for 1st cycle 15% for 2nd cycle||10% for 1st cycle 15% for 2nd cycle|
|Provision of Cash Collateral||GHC 3 per Week||GHC 3 per Week||GHC 20 per Month|
|Advance in Provision||Last 4 instllment||Last 4 instllment||1 Installment|
|Admission fees||GHC 3||GHC 3||GHC 5|
|Cost of Passbook||GHC 2||GHC 2||GHC 2|
ASA Ghana has fifty-four (54) branches across four (4) regions of Ghana; namely
- Greater Accra Region – 29 Branches (Head Office)
- Ashanti Region – 15 Branches
- Central Region – 4 Branches
- Western Region – 6 Branches
Source of Fund: Shareholder’s Equity & Loan
Performance: (Lending Started in February 2008)
|Particular||Up to December 2012|
|Total # of branches||54|
|Total # of provinces||4|
|Total # of districts||11|
|Total # of members||79,540|
|No. of Borrowers||71,633|
|No. of Loan Officer||235|
|No. of Borrowers per Loan Officer||305|
|Loan Outstanding (Principal) U$$||31,590,790|
|Avg. Outstanding per Borrower (U$$)||441|
|Portfolio per Loan Officer (U$$)||73,126|
|Rate of recovery||99.74%|
|Total # of staffs||371|
Head Office: House # 612, South Odorkor(Off Odorkor-Mallam Rd), Accra, Ghana