PRATIQUES - Microfinance

Initiative Development - Ghana

Photo of the team :

Country of intervention: Ghana

City(s): Accra Metropolitan Assembly (capital city), Greater Accra Region

Date of start-up of activities (month/year): June 1998

Date of institutional formation/constitution (month/year): June 1998

Legal status: Non Governemental Organisation (Financial NGO)

Address: 3rd Crescent Asylum Down, PO Box GP-19382, Accra

Tel.: +233 21 249 109

Fax: none

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Manager (Director): Romain Tevels(Executive Director)

Executive Council Chairperson: vacant

Updated Nov 11th, 2008 - Online Nov.17th, 2008

Key figures:

Number and nature of the programs¹ / activities: Urban Development Program / Microcredit, Savings and Training services to women in Accra's most deprived neighborhoods.

Teams and number of field workers: 41 full-time employees; 28 field workers (Operations & social mission); 13 support and administrative staff.

Teams in HO: 8 operational staff + 5 (drivers, security men, utility workers) 

Total provisional budget 2008 : € 338,305 (includes investments and operating expenses - excluding provision for loan losses).

Total number of direct beneficiaries per year: 4,453 active partners in Sept. 2008; total outstanding portfolio = € 524,583).

Sources of private and public subventions: French Ministry of Foreign Affairs (until June 08), Entrepreneurs du Monde (Robin Hood Foundation, French Post "La Poste", private donors,etc.)

Historical of the creation :

The vision behind ID-Ghana's creation is to enable the poor to develop their own income generating activities in order to reach better economic, health and education standards. The program was launched in Sukura (West Accra) in 1998, before being expanded to other neighborhoods (with the opening of branches in Zongo, Chorkor, Agbogbloshie, Zabramaline, Russia, Nima East and New Town). In 2006, significant changes took place from a methodological standpoint, which paved the way for the implementation of two ongoing pilot projects (an Onipa Nua project in Glefe based on ASA methodology, and a front office approach in Agbogbloshie), along with the creation of a new branch in the market of Madina. At the same time, for the sake of increased efficiency, ID-Ghana has been led to merge, on the one hand Zabramaline and Russia branches, to form Dansomanand on the one hand Nima East and New Town branches, to form Nima-New Town.

Objective/mission :

ID-Ghana's mission is to build a dynamic financial, entrepreneurial and social development organization which provides economic opportunities to people living in urban deprived areas. ID-Ghana intends to take part in poverty reduction efforts through the provision of lasting access to credit, savings and training services to the poorest in Accra. The overall challenge confronting ID-Ghana is to manage to achieve a successful combination between its social development mission and the imperative need for operational and financial sustainability.

Action’s principles :

The values and principles that underlie ID-Ghana's action are as follows:

§         Remain a social-oriented organization: ID-Ghana should constantly make sure its action has an impact on the lives of the very poor. Providing financial services always goes along with answering our clients' social needs (in terms of capacity-building, training, social awareness).

§         Reach out to more beneficiaries: ID-Ghana intends to extend its services to all deprived areas of the Greater Accra Region and promote entrepreneurship among the urban poor.

§         Achieve operational sustainability: ID-Ghana's ambition is to adopt a suitable and stable legal status, increase its portfolio size without sacrificing quality and enhance internal control standards.

Programs :

ID-Ghana implements one credit and savings program, which is endowed with a strong training component. Under this program, the following products are proposed:

§  Onipa Nua Group-Loans: group loans given to individuals within a group and ranging from GH¢20 to GH¢1,000 (€ 13 to € 640). Savings balance required prior to subsequent loans.

§  Small loans: individual loans ranging from GH¢200 to GH¢2,500 (€ 130 to € 1,600). Savings balance required prior to subsequent loans.

Target groups and beneficiaries : 

§         Target beneficiaries of micro-loans belong to the urban poor (the most deprived of the poor). They run a micro-business and live/operate in ID-Ghana branch operations area.

§         Beneficiaries of small loans are among the urban poor. But they generally used to run a small business generating profit before being ID-Ghana's clients. They live/operate in ID-Ghana branch operations area.

§         As for those targeted by group loans, they belong to the urban poor (the most deprived of the poor) and run a micro-business. They live/operate in ID-Ghana branch operations area.

Operational Partners :

-          GHAMFIN (Ghana Microfinance Institutions Network)

-          ASSFIN (Association of Financial NGOs of Ghana)

-          Entrepreneurs du Monde (technical and financial support)

-          French Ministry of Foreign Affairs, French Embassy in Ghana (FSD) (financial support).

Financing / Budget :

Total provisional budget 2008: € 338,505 on investments and operating expenses.

ID-Ghana – revenue from activities 2007: 72.3% (67.1% with provision for bad debts)

Updated Nov 11th, 2008 - Online Nov.17th, 2008