News

DAILY GRAPHIC, 28th May April 2012

The Ghana Co-operative Credit Unions Asscociations (CUA) has held its 17th Educational and Biennial Delegates Conference with a call on credit unions to introduce more proactive measures to help reduce poverty in society.
The dean of the Faculty of Social Sciences of the University of Cape Coast, Prof. Stephen B. Kendie, who made the call, said there was the need for credit unions to introduce innovative ways to reach out the millions who still did not operate bank accounts.
"We also need to tailorour products to the daily activities of the poor and be proactive in doing so by cutting the bureaucracy, if it exists," he said.
The event, which was held at the Credit Unions Training Centre in Kasoa in the Central Region, was on the theme: "International Year of Co-operatives - The Role of Credit Unions in Bridging the Gap Between the Rich and the Poor."
Individuals and credit unions who distinguished themselves in their output were given awards.
Prof. Kendie said although credit unions ought to be congratulated on their contribution to reducing abject poverty, "we need to keep asking the question why inequality is increasing and poverty in the already poor regions and urban slums is not reducing."
Credit Unions, he said, filled a huge gap in the attempt to improve access to savings and credit facilities, especially for rural people. He added that credit unions had over the years been making the unbankable to become bankable.
He said credit unions all over the world provided a platform for secure savings and asset accumulation.
Prof. Kendie said one could not down-play the role of micro-savings metal box which committed members to make compulsory savings as a way of creating wealth.
"The concept of youth savings clubs in scholls embarked upon by credit unions, if properly managed, would assist the youth to cultivate the habit of savings. It is a fact that many households cannot save due to low levels of investment, low levels of productivity, thus intensifying the vicious cycle of poverty. To bridge this gap, credit unions need to create a market niche for the economically poor in the rural and urban communities." he said.
Prof. Kendi said the United Nations continued to recognise cooperatives as the answer to economic development in areas where both the public and private sectors had failed or were non-existent.
The UN, he said, also recognised the important role of credit unions in building inclusive financial systems in the 2005 Blue Book Report, which provided a seet of guidelines and suggestions for governments following the Year of Microcredit.
He said with the global unemployment rates on the rise, cooperatives were looked up to as prime facilitators of job creation because of their commitment to social justice.
Prof. Kendie said for credit unions to be used as tools for bridging the gap between the rich and the poor, there was the need for the unions to adhere to the international credit union principles.
"The poor need micro-insurance. It is now time for credit unions to upscale and reach out to lower income customer segments."

The CUA National Board Chairman, Mr Cyprian Basing, called on credit unions to uphold the objectives for which they were established. He commended the goverment for creating an enabling environment for credit unions to thrive. He said with this year being an election year, there was the need for peace, before, during and after the elections.

The acting Director of the Financial Sector Division at the Ministry of Finance and Economic Planning, Ms Yvonne Quansah, commended credit unions for the role they were playing in the reduction of poverty. She said the government would continue to create the right atmosphere for them to grow and expand.

The Deputy Country Director of the German Technical Cooperation, Mr Kourad Bortoli, said the philosophy of the organisation was to help people help themselves.

The acting Executive Secretary of the Ghana Micro Finance Institutions Network, Mr Yaw Gyamfi, charged credit unions to expand to every part of the country so as to help in facilitating the reduction of poverty.