The Director of Dalex SWIFT, a subsidiary of Dalex Finance, Mr. Joe Jackson has called on stakeholders in the microfinance sector to work on rebranding the sector to make it attractive to small business owners in the informal sector.
According to him, the debacle that hit the sector has caused confidence among players in the informal sector to dip, hence the need for a winning brand strategy to regain trust among business owners.
The Bank of Ghana in recent times closed down some microfinance institutions in the country after customers of DKM microfinance company and God is Love Fun Club, among others, lost their investments running into millions of cedis.
The move is said to be having a negative impact on the activities of the sector as confidence dips among the informal sector.
Stressing on the need to undertake pragmatic marketing steps, Mr. Jackson stated that it is pertinent to include the informal sector in the financial setup of the economy to boost growth.
“If we are going to achieve financial inclusion as a nation, then we have to pay attention to the informal sector. We have to encourage the large of players in the sector to believe in the financial system to improve their lives,” he said.
He explained that moving the informal sector to the financial system will open opportunities for small business owners to access funds.
“The advantage about financial inclusion is that, it will provide opportunities for all the participants to access loans at a cheaper rate,” he said.
He stated that the move will also help channel funds in the economy to the critical areas that require money for immediate investment.
“Another advantage of financial inclusion is that it directs money to the areas that seriously need the money. One of the things Dalex as an institution does is to invest in consumer loans,” he said.
He stated that part of the high cost of lending could be attributed to the low supply of funds as demand is high.
By: Lawrence Segbefia/citibusinessnews.com/Ghana