Financial insitutions urged to capitalise on govt initiatives
The Minister of Employment and Labour Relations, Mr Ignatius Baffour Awuah, has called on financial institutions to take advantage of the one district, one factory initiative of the government to expand their operations to all parts of the country.
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That, he said, would help financial institutions, especially Non-Bank Financial Institutions (NBFIs) such as the credit unions to join hands in order to provide the funding support to interested companies and individuals to make actualise the initiative.
“Among government policies that we will soon be embarking upon is the one district, one factory initiative but I think that financial institution can take advantage to expand their operations,” Mr Awuah said in his address at the 8th African Credit Unions (SACCO) leadership forum on Wednesday, March 8, 2017 in Accra.
The forum, which was organised by the African Confederation of Co-operative Savings and Credit Association (ACCOSCA) and the Ghana Co-operative Credit Unions Association (CUA) Limited, served as a platform for credit union leaders to discuss current issues, challenges and solutions facing SACCOS/credit unions across the continent.
It was on the theme: “Exploring the Strategies for Enhancing SACCO Competitiveness.”
Mr Awuah said the theme for the event clearly underscored the commitment of SACCO members to work together to promote the development of co-operatives in their respective countries.
He said the Ministry of Employment and Labour Relations was in talks with heads of sector institutions and social partners in key areas which includes employment, job creation and skills development.
“Ostensibly, this is to give me the needed insights that would inform policy direction going forward. Among others, the areas include employment, job creation and skills development,” he noted.
Adhere to good corporate governance
The Chief Executive Officer (CEO) of ACCOSCA, Mr George Ombad, urged businesses in Africa to adhere to good corporate governance in order to enhance their ability to attract better investment opportunities.
He said funds would only flow to countries or entities which were seen to have internationally accepted standards of corporate governance in their operations.
“The capability of a country or corporate entity to entice or attract capital providers is subject to the efficiency and effectiveness corporate governance practice,” he observed.
A good governance structure specifies the distribution of rights and responsibilities among different participants in the company and specifies the rules and procedures for making decisions in corporate affairs.
Mr Ombad indicated that good corporate governance had a positive link to economic development and good corporate performance on the operations of every organisation.
He said inculcating the principles of corporate governance would attract investors, both local and foreign since they would have the assurance that their investment would be secure and efficiently managed in a transparent and accountable process.
“Investors are not willing to invest in countries or companies that are corrupt, prone to fraud, poorly managed and lacking sufficient protection for investors,” he added.
The story of CUA
The story of the Ghana Cooperative Credit Union Association (CUA) reads like a tale encapsulating the spirit of enterprise, self-determination and commitment.
From very humble beginnings in 1968 when it was established as the apex body of the credit union movement in the country, the CUA, it is refreshing to note currently has on record over 500 registered unions.
Statistics indicates that membership of the CUA increased from 515,379 in 2008 to 1.3 million in 2014, almost double the number in a period of about 10 years.