By Erica Apeatua Addo
Tarkwa (W/R), Oct 14, GNA-Minescho Credit Union sustained the growth in its membership base, savings, and loan portfolio in 2023 despite the ongoing economic challenges, Professor Anthony Simons, the Board Chairman said.
He announced this at the 31st Annual General Meeting (AGM) of Minescho Credit Union in Tarkwa when he presented the 2023 annual report.
The AGM was on the theme: “Transforming Lives Through Savings and Access to Finance Opportunities”.
Prof. Simons said the credit union recorded three per cent growth in its membership base, bringing their total membership to 15, 081 in the year under review. This growth revealed that people still recognize the value of being part of a member-owned financial institution.
According to him, members’ commitment to saving had been commendable, with total savings increasing by 36 per cent, adding, “the growth in savings is a testament to the trust and confidence that members place in the union. More importantly, it highlights members’ commitment to securing their financial future.”
On loan portfolio, he said they have expanded by 17 per cent, and that their loan products continued to meet the diverse needs of its members, from personal loans to small business financing, has enabled them to achieve their financial goals.
“Despite the economic challenges that have affected many sectors, our credit union has remained resilient and continued to grow. Our total assets have grown by 51 per cent over the past year. This growth was driven by a significant rise in member savings and prudent financial management.
The union recorded 11 per cent decrease in its net surplus declared in the 2023 financial year as against the previous year. This is due to the high cost of funds, additional personnel engaged and an increase in the administrative cost of the union”.
He said they disbursed loans for 649 members amounting to GH¢14, 172, 906.03, supporting various needs such as education, home improvement, and small business development.
These loans have been instrumental in not just meeting immediate needs but in transforming lives by providing members with the means to pursue their dreams and aspirations.
He said one of the most significant milestones they achieved within the year was the opening of new branches and agencies across its operational region. These represent their commitment to bringing financial services to the doorsteps of its members.
“We have successfully upgraded the Bogoso Agency to a branch status in a strategically identified office location, which is well equipped with the relevant technology and dedicated staff to provide service to our members.
“In addition, the union has carried out feasibility studies in Aboso and Wassa Simpa to establish new agencies, bringing our services even closer to members who may not have easy access to our main branches. We are also considering another agency at UMaT School of Railways and Infrastructure Development (SRID) in Essikado, Sekondi.
These steps, Prof. Simons indicated, would not only expand their physical presence but also reinforce their role as a catalyst for economic development within the communities.
On the way forward, the board chairman said they would continue to innovate and adapt their products and services to meet the evolving needs of its members.
“The union’s strategic focus for the coming year include expanding their digital services to improve upon accessibility and convenience for members, enhancing loan offerings to support small businesses and entrepreneurs and increasing our investment in financial literacy programmes to further empower our members”.
He expressed gratitude to the members, board members, members of the various committees, management and staff for their continued trust, support, dedication and hard work.
Mr Roland Philip Baffoe, Secretary, Loans Committee, stated that with support from the board of directors, Minescho management and members, the credit union recovered GH¢14,686,094.59, and this amount covers the interest of GH¢ 2,350,560.25.
He said some loan defaulters were engaged in meetings to encourage them to pay their loans, while recalcitrant members were processed to court for further action, adding these were strategies employed by the credit union to recover loans.
Mr Baffoe said the committee recommended that court action should be taken against recalcitrant loan defaulters, and the loans committee should conduct regular engagement of loan defaulters.
Mr David Kwaku Gyapong, Head of Legal Unit, UMaT, who chaired the function, commended members and the board of directors for their support in growing the credit union.
He assured members that they have competent people who would help increase their monies and that they would continue to put strategic measures in place to recover loans.
GNA