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Disruptions and the protracted effects of the COVID-19 lockdown in the non-bank financial institution sector in Ghana
01.06.2021
This paper assesses disruptions in the non-bank financial institution (NBFI) sector and the protracted effects of COVID-19 and the lockdown on the NBFI sector. The paper focuses on microfinance institutions in Ghana using rapid response survey data obtained from the Ghana Microfinance Institutions Network between January 2020 and April 2020. Poor corporate governance, improper documentation of transactions, and impaired loan portfolio among others were antecedents to the disruptions. Regarding the lockdown effects, we found that savings value contracted and the possibility of a further deteriorating portfolio is anticipated thus reducing interest income. The use of digital channels of delivering savings and loan products increased while the physical delivery channel decreased. The regulator needs to have a second look at microfinance regulation in Ghana. Policy should focus on expanding and upscaling the use of digital and remote banking means in reaching out to clients. -
Editorial
01.06.2022
Africa continues to lag behind the rest of the world in terms of poverty. Parallel to the post-2015 development agenda, the African Union launched its Agenda 2063 in 2013 as a call for action to all segments of African society to work together to build a prosperous and united Africa. However, evidence suggests that most countries in Africa may not be able to meet the Sustainable Development Goals by 2030. One of the ingredients to serve as a big push for Africa is financial resources. Access to finance has the potency to lift people out of poverty and also make them resilient. While attempts have been made to make finance available, most government interventions do not seem to have worked. This edition of EDM focuses on Africa given that the continent continues to struggle towards achieving inclusive finance for reducing poverty.