Dr John Agyekum Hene, Director, Bio-fuel and Renewable Energy Fund has called on Government to collaborate with development partners to institute a scheme to strengthen apex bodies to handle their roles in the microfinance industry.

He said such an assistance or facilities would not be for credit but capacity building and institutional development. Dr Agyekum Hene was speaking at the 3rd Annual General Meeting of the Association of Financial Non-Governmental Organisation (ASSFIN) in Accra on Thursday.

He said the microfinance sector deserved greater attention than it was accorded now, if only the country was determined to fight the epidemic of poverty. “We need as a nation to recognise that the industry is still at its teething stage and has not yet reached the weaning stage,” he added.

He said facilities and requisite support should be put in place to enhance growth and development without sacrificing efficiency, effectiveness and affordability. He said the micro-finance industry was burdened by the multiplicity of concepts and approaches as well as diverse intermediaries and practitioners with entrenched organisational philosophies.

Dr Agyekum Hene said regulation should not necessarily be mandated in a vacuum but it must operate under sound national and institutional policies. “In tandem, the two should promote development, growth and endeavour to reduce inhibitory factors,” he said.

Mr Stanley Walter Attafi, National Chairman, ASSFIN said the Association was advocating for the review of Bank of Ghana’s capital requirement for Financial Non-Governmental Organisations (FNGOs) as part of regulating the micro-finance industry. He lamented that since the introduction of the regulation for the industry, most member institutions have faced working capital challenges.

“It is unfortunate to note that the Central Bank has revised the capital requirements for the various actors in the sector but for the FNGOs, the capital requirement has been increased to GH¢300,000.00” he added.

Mr Joshua Afriyie, Executive Secretary proposed the establishment of the Association of FNGOs fund to be managed by an independent committee. He said the fund would go a long way to address funding challenges of the Association.