Illegal Microfinance Coys in Trouble

Fiifi Kwetey

Government has expressed its preparedness to flush out players in the microfinance and non-banking sector who operate without authorization.

 According to a Deputy Minister of Finance and Economic Planning, Fiifi Kwetey, government had resolved to chase out illegal operators from the system.

Speaking to journalists in Accra on Friday, the Deputy Minister said in spite of the key role played by the sector, illegal activities were hampering efforts by the government to maximize the potential of the sector.

He cautioned operators who are not up-to-date with their licensing to “do so immediately or attract serious sanctions from the regulator.”

Government, he stated, would not compromise in ensuring that the players comply strictly with the rules and regulations and advised those with intentions to operate in the financial services sector to legitimate their businesses.

Mr. Kwetey said 25 financial entities had been licensed by the Bank of Ghana (BoG) presently to operate and reiterated the government’s commitment towards encouraging the active participation of private investors in the financial service sector.

He also urged existing operators to be innovative and aspire to support individuals and businesses in the informal sector with improved services.

The operators in the non-formal financial sector have struggled to survive in spite of their contributions to the financial sector and they are often overlooked in favour of the formal sector.

Through their activities, they offer easy access to credit and financial support, especially to workers in the informal sector and have supported small-scale businesses.

 By Emelia Ennin Abbey

 

 

 

 

 

 

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