Credit Unions have the potential to become a major source of financing for bankable Micro, Small and Medium Enterprises (MSMEs) in the country, Social Policy Advisor at the 24-Hour Economy and Accelerated Export Development Secretariat, has said.
He said the significant financial resources within the credit union sector could be strategically deployed to address financing gaps facing MSMEs and cooperatives, while supporting productive economic activity and sustainable growth.
He made the remarks in a solidarity message at the 24th Educational and Biennial Conference of the Ghana Co-operative Credit Unions Association (CUA), held under the theme, “Strengthening Credit Unions for Sustainable Growth in a Changing Financial Landscape.”
Dr. Alhassan Adams explained the important role credit unions can play in providing accessible financing to businesses, particularly MSMEs and cooperatives that can transform the economy of the country through the provision of capital to expand production and create jobs
He mentioned the GH¢8.2 billion assets of CUA as a significant financial resource that could be leveraged to increase financing for a lot of bankable business projects and said it can be a win-win for CUA and SMMEs.
“ This is not a utopian idea. If you take Kenya, an African country, as an example, the Savings and Credit Cooperatives (SACCOs) in that country support businesses to the tune of 950 million dollars. CUA is in the position also to step up in that role in Ghana to show the way”, he said.
Dr. Alhassan gave updates on the process to develop a draft new cooperative bill to replace the outmoded 1968 bill and said “we want a cooperative bill that is modernised to support productivity in Ghana”.
