By D.I. Laary, GNA
Tafo (E/R), Dec. 03, GNA – The Cocoa Research Cooperative Credit Union highlights that women are cautious when applying for loans, as only 314 out of 1,510 loan submissions in 2023 came from women.
The trend indicates significant gender disparities and underscores the need for introduction of strategies to empower women’s financial participation.
In an interview with the Ghana News Agency, Mr. Peter Boamah-Dankyi, Chair of the Loans Committee of the Cocoa Research Cooperative Credit Union, said that out of the 1,510 loan applications received in 2023, 1196 were from men while 314 were from women.
He stated that analysis showed women exhibited a notably cautious approach when seeking financial assistance, but the development raises questions about gender disparities in loan accessibility and greater female participation in financial offerings.
With men significantly outnumbering women in loan applications, stakeholders are now focusing on creating strategies that empower women and foster equitable opportunities for financial growth.
Mr. Boamah-Dankyi was speaking at the Annual General Meeting of the Cocoa Research Cooperative Credit Union on the theme “Wealth Creation through Cooperative Financing” in Tafo, in the Eastern Region.
He said the committee held 42 meetings to assess and recommend loan applications for approval and disbursement.
Net loans to members as of 31st December 2023 totaled GHS22,123,462.35, representing 72.22 per cent of the Union’s total assets of GHS31,244,149.19.
According to his report, loan requested, approved, and disbursed were used to finance building projects, children’s education, medical bills, business expansion, and members’ funeral activities.
“We are grateful to the Loans Committee and the office staff for their efforts to retrieve delinquent loans,” he added.
He attributed the wide discrepancies in loan applications to the fact that many men were breadwinners and heads of families, ensuring peace and harmony at home.
He explained that men in that area tended to shoulder greater responsibilities, including building projects, ensuring children’s education, healthcare, and regular maintenance of the home.
However, he noted that women were often more cautious when securing loans, prioritizing due diligence.
Mr. Eric Koranteng, the General Manager of the Cocoa Research Cooperative Credit Union, also explained that the work of the Cocoa Research Institute was rooted in research utilizing many labor-intensive farms.
He also mentioned that men outnumbered women in the institute, which contributed to the male-dominated membership of the credit union.
Despite this, he emphasized that more women are joining the credit union with the expectation that they would access loans and close the gender gap.
He elaborated that the purposes for loans differ between genders; men typically seek loans for infrastructure development and educational funding, while women often use loans for trading and restocking.
Many women are involved in textiles, upholstery, and petty trading in the central market of Koforidua following the credit union expansion to that enclave.
He explained that members came from the institute, farms, and other public sector positions, noting that “the majority of the men are white-collar workers.”
He stressed that interventions were being introduced to empower women and improve their capacity to access loans and expand their trades.
“Going forward, we are implementing a gender-specific parity policy to guide women’s inclusion in the credit union,” he said.
Dr. George Akumfi Ameyaw, Board Chair of the credit union, highlighted the relevance of the theme “Wealth Creation Through Cooperative Finance,” stating that individuals needed wealth to survive because “wealth is health. If you do not have money or resources, you become sick.”
He noted that one of the easiest ways to achieve wealth creation was to participate in the cooperative union, with Cocoa Research being a recognized credit union supervised by the Bank of Ghana and the Cooperative Union Association (CUA).
The AGM aimed to inform and update members about the financial standing of the union and to discuss innovative policies.
Dr. Ameyaw emphasized the importance of saving, investing in shares to receive dividends, and obtaining credit and loans to finance projects for wealth and financial independence.
He stated that the union targeted lower-income earners, such as petty traders looking for small support to transition to financial independence.
He also commented on the gender disparity in loan applications, which reflects in the union’s membership of about 70 per cent men and 30 per cent women.
He noted, “Women are careful with their finances. Before a woman decides to take a loan, she conducts thorough analysis, and they want to avoid being labeled as non-payers. In contrast, men often seek funds due to their numerous responsibilities.”
He stressed that the purpose of men’s loans often pertained to education and construction, with many men applying in the names of women.
He provided key highlights of the union’s achievements during the reporting period, including the growth of total assets from Gh¢13,994,173.42 at the time of the merger in 2018 to GHS31,244,149.19 as of December 2023.
The 2024 financial year projects that our total assets will exceed 42 million Ghana cedis, categorizing the union as a Large Credit Union, as assessed by CUA.
He also highlighted a 32 per cent growth in membership over the previous year and the growth of the Koforidua branch to GHS1,705,719.23 in total assets.
Furthermore, he noted timely payments of interest on members’ savings.
GNA