Microfinance Identified As a Tool to Achieve MDGs

from All Africa

Public Agenda (Accra)

By Kwaku Baah-Acheamfour
Cape Coast

University of Cape Coast has held its annual two-day Conference on Microfinance at the Elmina Beach Resort in the Central Region.

It was to assess the importance of microfinance in building Ghana's economy especially in meeting the Millennium Development Goals(MDGs). An impressive 210 people attended the function.

Speaking on the theme 'Microfinance: A Tool for Achieving the Millennium Development Goals' the Pro Vice Chancellor of the University, Prof Haruna Yakubu observed that the conference was to afford participants, policy makers, practitioners and other stakeholders the opportunity to discuss the possible outcomes and impact of using a financial tool to achieve a set of social goals especially, in meeting the Millennium Development Goals.

He explained that based on the assumption that microfinance provides financial leverage for poor households and stimulates economic growth at the macro level, stakeholders would be exposed to the mechanisms through which microfinance is capable of contributing to the achievement of the Millennium Development Goals.

Prof. Yakubu added that there is the need to let microfinance services reach out to the poor clients on a sustainable basis and also assess the strength of microfinance as a sustainable development tool.

He however, opined that despite the rapid expansion on micro credit scheme ,there remains a huge unmet needs and that the gap needs to be closed if the target of the millennium Development Goals is to be achieved.

The Central Reginal Minister Nana Ato Arthur lauded the university for helping the nation to plan and reduce poverty through the use of microfinance tools.

He explained that even though the MDGs do not formally set targets for financial sector access,it is an undeniable fact that low income economies like that of Ghana need microfinance to achieve the MDGs.

"Microfinance to a large extent fosters financially self sufficient domestic private sectors and creates wealth for low incomes. It is to underline its importance that 2005 was designated by the United Nations as the year of micro credit".he added

He stressed that government has indeed seen the importance of microfinance and has therefore put in place specific programmes to help boost the role microfinance plays in the nation's socio-economic development. This necessitated the establishment of the Microfinance and Small Loans Scheme (MASLOC) with seed capital of GH¢2.43m to support the Agric Sector and the implementation of a 5 year Urban Poverty Reduction Project which aims at contributing to Ghana's effort at achieving the MDGs.

He emphasized again that the introduction of small-scale programmes in agriculture,industry and mining,rural energy,micro credit as well as employment generation programmes have led to improvements in incomes and to the food security situation in Ghana which are all worth providing for especially in achieving the MDGs.

"The Agric Sector has also benefited from a number of credit facilities which have contributed to the reduction of poverty in the Central Region . For instance, the Ginger Project located in the Twifu-Hemang -Lower Denkyira District has benefited from the credit facility."