The Ghana Association of Credit Union Managers (GHACUM), the umbrella body of credit union managers across the country has hinted that they are considering acquisitions and mergers to better serve their customers as part of the Bank of Ghana’s directives.
GHACUM is explaining that there is the need for the non-functional credit unions across the country to merge with the formidable ones to grow confidence in the sector as part of the licensing regime of the Bank of Ghana.
The association said, this is to see credit unions and cooperative financial institutions drive the financial inclusion sector of the economy.
According to the association, the acquisition and mergers are in line with the Bank of Ghana’s Legislative Instrument (LI225) 2015 that sought to regulate the industry.
The association said there are about five hundred and thirty credit unions in the country and a handful of them are non-functional.
Out of this number only one hundred of these credit unions report their audited accounts to the Bank of Ghana annually.
It is the expectation of the association that the new BoG law governing the sector will help streamline their operations.
The associations said the mergers and acquisition being rolled out will lead about two hundred of their members being absorbed by others as part of the exercise.
Alhaji Ali Suraj, president of Credit Union Association (CUA) made this revelation at the nineteenth education conference and annual meeting on the theme: ‘Sustainability of Credit Union in the Era Regulation; the Manager as the Driving Force’ at Koforidua in the Eastern Region.
The association also used the annual meeting to also launch its official uniform for members of the association.
He added the BoG’s decision to regulate the sector is welcome news and ‘we wholly welcome it to boost our operations as part of the financial inclusion drive of the regulator.
He expressed the association’s gratitude about the BoG’s decision and called on members to embrace it to move their operations forward in the country.
He said after the mergers it is expected that the operations of the over three hundred licensed credit unions will help streamline their activities in the sector.
According to him, these will lead to curbing bad practices that will derail the good efforts of credit unions in the country.
The national president Nana Kwasi Agyemang on his part called on members to use innovations in the administration of their duties.
According to him, leadership intends providing a technology platform for members to enable them make use of technology in the delivery of their services to the customer.
‘’Since many of our members operate in the remote areas, leadership has decided to create a platform where sheds will be provided for members to bring their activities closer to the business centres’ he revealed.