Sustainable Solutions to Poverty

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Sustainable Solutions to Poverty

• Emmanuel Darko
• General Manager
• Credit Union Association of Ghana

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1. INTRODUCTION

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2. Various approaches to poverty alleviation
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2. Government policies should be PROACTIVE
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The Formal Financial Institutions
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3. Other Credit Institutions
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Social Obligations
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CULTURAL AND ENVIRONMENTAL DIFFERENCES
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6. THE CREDIT UNION CONCEPT
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• 7b. Lack of Savings Habit
• 7c. Lack of Motivation for Small Savers

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7. Can the poor really save?
7a. Lack of Convenient and Reliable Depository
Facilities
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• 7d. Lack of Proactive Savings
• (Reactive Savings)

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• 7e. Lack of Purpose

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IMPACT ASSESSMENT
8a. What you have Achieved
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7b. Distribution of Loans in Ghana

• Education - 30
• Business Loans - 25
• Agriculture - 15
• Housing - 20
• Medical - 5
• Funerals other Social Activities - 5

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9. LESSONS LEARNED
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• 9a. The Credit Union Approach

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• SUMMARY
• Micrco-finance institutions should be able to
  apply some of the principles enumerated below to
  be able to exist tomorrow
• Build loanable capital from within and not depend
  solely on external capital. Developing savings
  mobilization schemes would support the process of
  sustainability in the long-term.
• Pricing of products and services must be market
  oriented.
• Include education and training component in all
  your credit programs.
• Develop a vision and long-term plans for the
  institution
• Build the capacity of staff to enhance efficiency
  and manage growth.

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• 9b. Combination of Savings/Credit with
  education

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• The combination of savings and credit with
  education is the only way to alter the minds of
  the poor towards their own future development.

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THANK YOU!