Accra, Sept. 30, GNA
- World Bank delegation and International Finance Corporation (IFC) have paid a
courtesy call on Mr Mike Nyinaku the Chief Executive Officer of BEIGE Capital,
to discuss how financial institutions are supporting Small and Medium Scale
The meeting also focused on how those in the informal sector of the economy can contribute effectively to the growth of the national economy.
Mr Nyinaku said it would not be practicable for the country to succeed in the quest to achieve financial inclusion for the masses if it neglects the informal sector.
He said while the transaction process enablers such as mobile money is supporting the drive for a cashless economy, even at the micro level, access to credit would remain a big barrier to achieving a total financial inclusion.
Mr Nyinaku said one major barrier inhibiting access to credit is the legal system and contended that in spite of the introduction of the lenders and borrowers Act, the time it takes to secure judgment, coupled with the difficulty in executing judgment in the case of loan default makes the provision of credit to the informal sector unattractive.
’He said as a people we have been socialized in a way that rejects any effort at debt recovery. It is interesting to note that in some parts of the country you can’t execute an item of collateral because no one would want to buy that item of collateral’’, he said.
He attributed the success of BEIGE Capital Savings and Loans to its ability to adapt and customize international credit delivery approaches to suit the unique circumstances of the country’s informal sector.
Mr Nyinaku expressed the willingness of BEIGE Capital to engage IFC on any potential partnership that will inure to the benefit of both institutions, saying it is not always the case that there are bad borrowers, but sometimes there are also bad lenders.
The representatives of the World Bank who attended the meeting were Kaliza Karuretwa, a Senior Operations Officer; Anne Ytreland, a Private Sector Development Specialist; and Gaiv Tata, the Director for Growth Solutions Development LLC,.