Vous êtes sur la page 1sur 25
M ICROFINANCING : A N I NTRO By Michael Mak

MICROFINANCING: AN INTRO

By Michael Mak

SUMMARY

Empowering Microcredit in Women Ghana
Empowering
Microcredit in
Women
Ghana

Understanding

microcredit

Setting up microcredit in Ghana

S UMMARY Empowering Microcredit in Women Ghana Understanding microcredit Setting up microcredit in Ghana

BASIC CONCEPT

Microfinancing encompass the provision of financial services and the management of small amounts of money through the range of products and a system of intermediary functions that are targeted at low income clients

Includes: loans, savings, insurance, transfer services

 Includes: loans, savings, insurance, transfer services Microloans

Microloans

loans, savings, insurance, transfer services Microloans

MICRO LOANS

What are they?

Small loan to purchase productive assets boosting

revenue allowing repayment over a short period of

time in small instalments without the guarantee of collateral

The size is kept small in three dimensions (see next slide)

The size is kept small in three dimensions (see next slide)

MICROLOANS KEEPING IT SMALL

The size is kept small in three dimensions

In relation to borrower’s

income

in three dimensions In relation to borrower’s income In absolute monetary value (no competition) In respect

In absolute monetary

value (no

competition)

In respect to lender’s

portfolio

Microloans
Microloans
In respect to lender’s portfolio Microloans

WHAT DOES MICROLOANS PREVENT?

Eliminates ―loan sharks‖ that provide loans to the poor at high rates, exploiting the emergency need for money

Avoid the cycle of growing indebtedness and heavy pressure for repayment, avoiding menaces and violence

heavy pressure for repayment, avoiding menaces and violence

MICROCREDIT VS. LOANS

Advantages

Disadvantages

 

Microcredit

Loans

relatively low interest

There is no limit on the

rate

loaning amount and

No collateral is required

borrowing period

Group member can support you

Limit with loan amount

Interest rate is high

and borrowing period

they request collateral

Need to be a member

for securing the loan

and pay membership fees

period • they request collateral • Need to be a member for securing the loan and

ENSURING PAYMENT

Character Capital Capacity
Character
Capital
Capacity

Honesty and reliability in paying back the loan

Current available assets, that can be used to pay back the loan if expected

income is

unavailable

How much money

can be paid back,

taking into account income flow and

legal obligations

paid back, taking into account income flow and legal obligations http://www.accu.or.jp/litdbase/material/pdf2/mt/mt06.pdf

HOW TO PAY BACK

Paying an instalment every week/month Paying back the entire loan at the end of the
Paying an
instalment every
week/month
Paying back the
entire loan at the
end of the borrowing
period

SUMMARY

Empowering Microcredit in Women Ghana
Empowering
Microcredit in
Women
Ghana

Understanding

microcredit

Setting up microcredit in Ghana

S UMMARY Empowering Microcredit in Women Ghana Understanding microcredit Setting up microcredit in Ghana

WHY TARGET WOMEN?

Gender inequalities in developing countries

inhibit economic growth and development

Women are disproportionately represented among the world’s poorest people – 70% of the 1.3 billion people living on less than $1 per day are women

Women spend more of their income on households, so when their income increases, welfare of whole family is improved

Promote gender equality and women’s equal

access to financial resources

Empowering women through microfinance

 Promote gender equality and women’s equal access to financial resources Empowering women through microfinance
WHAT IS EMPOWERMENT? Change Empowerment Power Choice
WHAT IS EMPOWERMENT?
Change
Empowerment
Power
Choice

Empowering women through microfinance

In order for a woman to be empowered, she needs access to the material, human, and social resources necessary to

make strategic choices in

her life . However, resources are not enough need ability to utilize these

resources

to make strategic choices in her life . However, resources are not enough – need ability

DOES CREDIT AUTOMATICALLY LEAD TO EMPOWERMENT

Basic theory: microfinance empowers women by putting capital in their hands and allowing them to earn an independent income and contribute financially to households and communities However, the ability of a woman to transform her life through access to financial services depends on many factors

Individual situation and abilities

Status of women as a group

Environment

Need to properly access and evaluate the needs of women to maximize effect of microcredit

Empowering women through microfinance

properly access and evaluate the needs of women to maximize effect of microcredit Empowering women through

EMPOWERMENT LEADS TO:

Greater impact of decision making

Increase in self confidence

Impact on women’s status and bargaining

position within the household

Strengthening of economic autonomy

Improvement of women’s status in their

community

Political empowerment (rarer)

Empowering women through microfinance

of women’s status in their community  Political empowerment (rarer) Empowering women through microfinance

CASE STUDY IN GHANA: SINAPI ABA

TRUST (SAT)

Nana Addai

―Before joining SAT, I did not have much money, so I had to collect the goods from somebody, sell them, and give her the profit before she would

give me

supplierwhat had been bought, what is left, etc., before she would give

me other goods to

negotiate well for good prices and

not nice, I can go to a different store to purchase what I think people will

.The time that I spend with my business has reduced because I now have my own money, unlike the past where I was working for somebody so I had to be able to sell all day long before she would give me my share. So always I was tired and in a rush to make sure that I spend more time at

the business to ensure that people buy it. But now I have my own business

and money, and I can organize myself better to get time to rest.‖

Every week I would have to render accounts to the

Because I now have my own money, I am able to

if what my suppliers are selling is

Because I now have my own money, I am able to if what my suppliers are

Empowering women through microfinance

IMPORTANT POINTS FOR SUCCESS

Need to provide business training that is

designed to complement their existing skills and address their most pressing needs

Improve general education and literacy initiatives

Foster balance between family and work responsibilities

Increase dialogue on social and political issues

Workshops and experience in decision making and leadership

 Increase dialogue on social and political issues  Workshops and experience in decision making and

SUMMARY

Empowering Microcredit in Women Ghana
Empowering
Microcredit in
Women
Ghana

Understanding

microcredit

Setting up microcredit in Ghana

S UMMARY Empowering Microcredit in Women Ghana Understanding microcredit Setting up microcredit in Ghana

MICROCREDIT IN GHANA

Microcredit is not new in Ghana, rather it has

been common practice

First microcredit was probably established in Ghana in 1955 by missionaries

Susu, one of the current microfinance schemes in Ghana, is thought to have originated in Nigeria and spread to Ghana from the early 1900s

Microfinancing: A working paper

Ghana, is thought to have originated in Nigeria and spread to Ghana from the early 1900s

THREE BROAD TYPES OF MICROFINANCE IN GHANA

Formal

suppliers

Rural and

community banks, loans

companies

Microfinancing: A working paper

Semi-formal

Suppliers

Credit unions,

financial non- governmental organizations (FNGOs), cooperatives

Informal

Suppliers

Susu

collectors, clubs, rotating

and accumulating savings and credit associations

Informal Suppliers • Susu collectors, clubs, rotating and accumulating savings and credit associations

MICROFINANCE EXISTING IN GHANA

The Rural and Community Banks,

· Savings and Loans Companies

· Financial NGOs

· Primary Societies of CUA

· Susu Collectors Association of GCSCA

· Development and commercial banks with microfinance programs and linkages

· Micro-insurance and micro-leasing services.

Association of Rural Banks (ARB)

· ARB Apex Bank

· Association of Financial NGOs (ASSFIN)

· Ghana Cooperative Credit Unions Association (CUA)

· Ghana Cooperative Susu Collectors Association (GCSCA)

Microfinancing: A working paper

Unions Association (CUA)  · Ghana Cooperative Susu Collectors Association (GCSCA) Microfinancing: A working paper

SUMMARY

Empowering Microcredit in Women Ghana
Empowering
Microcredit in
Women
Ghana

Understanding

microcredit

Setting up microcredit in Ghana

S UMMARY Empowering Microcredit in Women Ghana Understanding microcredit Setting up microcredit in Ghana

TVG STATEMENT

Economic Empowerment: provide micro-loans to women in rural villages in Northern Ghana so that they can begin to end the cycle of poverty for themselves and their families.

in rural villages in Northern Ghana so that they can begin to end the cycle of

WHAT WE NEED TO DO

Assess current funds and resources from TVG Build sustainable Economic Plan with stages Review and
Assess current
funds and
resources from
TVG
Build
sustainable
Economic Plan
with stages
Review and
Evaluate
Assess
demand/capacity
Implement
stages according
from community
to success

for

Microfinancing

Review and Evaluate Assess demand/capacity Implement stages according from community to success for Microfinancing

ECONOMIC PLAN

Rules and Suitable guidelines to interest rate? loaning Resources at Education and hand Training Planned
Rules and
Suitable
guidelines to
interest rate?
loaning
Resources at
Education and
hand
Training
Planned
Stages that
need to be
reviewed and
evaluated
Translation
from English
Legalities and
accordance to
Economic
Formation of
Ghana
Plan
Co-ops?
Microfinance
Policy

FORMULATED QUESTION

Through assessing the need for microcredit loans in a community and the resources in TVG, how can we create and initiate a multi-staged economic plan that involves business training, education, and entrepreneurship so that women can be empowered through starting their own businesses?

business training, education, and entrepreneurship so that women can be empowered through starting their own businesses?