Prez of Association of Microfinances Caution Ghanaians About Dealing With Microfinances

President of the Association of Microfinance companies, Collins Amponsah, has cautioned individuals to be watchful when dealing with Microfinance companies.

According to him an individual can just get up, put groups together where he becomes the promoter, the owner, manage the business on his own and the next day you cannot find the person around but everything is jumped together and is called microfinance.

Once these things happen it affects the regulated ones who have been given license to operate and at the end of the day does not help the system to grow.

In an interview with Joy News, he explained that a group of people might decide to come together and decide that they want to put their savings together so that at the end of a term they would give it to one person or they invest and share the returns on the money without registering with the Bank of Ghana.

“My point of view is that if these things are coming up and the market seems to be viable it becomes an attraction site to people who want to be doing great things for themselves...”

"..they operate like the credit union without belonging to any single individual, they have their elected executives, constitutions, and model they follow because they are afraid to come under the cooperative society which can over see their activities and audit their activities and ensure that there is discipline and people are working it out the way it should go,” he added.