UNDP Microfinance Assessment Report: Ghana

The paper states that privatisation has created a wide gap for financial accessibility needs. In response, several non-bank financial institutions and NGOs have come to provide access for financial services. Most of these institutions are still in the process of designing appropriate packages to suit the demands of the large potential clientele. However it argues that the institutions.

• Suffer due to lack of appropriate legislation the microfinance practitioners and are not adequately regulated by either the government or an apex body;
• Lack a strong capital base and capacity to effectively deliver the financial services;
• Have become a focal point for micro credit delivery and savings mobilisation as they have more business friendly procedures and methodologies in dealing with the entrepreneurs.

Concludes that MFIs are set to not only fill the gap created by privatisation of banks, but become the strong and dependable channels for financial services delivery to the needy poor as a means of poverty reduction in Ghana.