Microfinance Associations: The Case of the Ghana Microfinance Institutions Network (GHAMFIN)

The paper states that for the development of the microfinance industry, the focus on developing second tier financial sector institutions such as microfinance associations (MFAs) is of prime importance. They can become a catalyst in consolidating and stabilizing the microfinance industry, specifically by addressing issues of:

• Regulation and supervision;
• Training and capacity building;
• Auditing and refinancing.

The paper concludes by summarizing the learnings of the study and highlighting the challenges that lie ahead of GRAMFIN:

• GHANFIN activities are designed to stabilize and consolidate the Ghanaian microfinance sector and contribute to a qualitative and quantitative upgrading of the sector;
• GHANFIN is an ideal partner for donors/ governments to create higher leverage, dissemination and outreach of their technical or financial assistance packages;
• Parameters for measuring the networks' performance include satisfaction levels of MFIs, outreach indicating the growth in membership, improved policy environment due to the networks advocacy, efficiency and effectiveness with respect to the costs incurred and benefits accrues to the MFIs;
• In addition to donor funds, GHAMFIN needs to increase its rate of self-funding in order to become more independent from external funds and to finance its planned activities.