Afro-Arab Microfinance will remain an MFI - Group Chairman

The Chairman of Afro-Arab Group of Companies, Alhaji Salamu Amadu, has urged microfinance institutions (MFIs) to maintain their status even if their balance sheets grow to the size of commercial banks.

According to Alhaji Salamu, although the current minimum capital requirement of GH¢400 million for commercial banks is attainable by most hardworking MFIs, it is important to keep to their core mandate as critical players in Ghana's economy.

He assured that Afro-Arab Microfinance, a subsidiary of the Afro-Arab Group will remain a microfinance institution irrespective of the size of its balance sheet in order to continue to provide essential services to the youth and women's groups in the lower class of Ghanaian society.

Alhaji Amadu reiterated that the concept behind the establishment of the Afro-Arab Microfinance was to provide support to youth and women's groups to develop their ideas into formidable businesses and be economically empowered to be self-sufficient.

“My dream for establishing this financial institution about a decade ago was to empower my dear brothers and sisters in the unbanked category especially those in the Zongo communities. This dream and vision have not changed, Afro-Arab will continue to reach out to these women and youth groups,” he said.

Alhaji Salamu made these remarks at the 10th-anniversary launch of the Afro-Arab Microfinance, which took place at the Afro-Arab Arena, Kokomlemle-Accra.

Touching on the theme for the 10th-anniversary celebration: ‘Women & Youth Development, he said this is the surest way of creating jobs and reducing the unemployment rate in the country.

On his part, General Manager, Afro-Arab Microfinance, Ebenezer Adjei Tetteh, reiterated that unlike some microfinances that quickly switched status to commercial bank when they met the target, the Afro-Arab Microfinance would remain true to its core mandate as a microfinance in order to better serve its target market.

“The target of microfinance is basically to work with people who are below the bankable ladder or people that the commercial banks are not willing to work with and this is what we have done well in the past 10 years and will continue to do,” he said.

Taking his turn, the Greater Accra Regional Minister, Mr Henry Quartey, lauded Alhaji Salamu for his efforts to ensure that the youth and women in the country become gainfully employed

He also called on the management of the microfinance institution to as part of its corporate social responsibility, concentrate on helping to make the Zongo communities clean and environmentally friendly for human living.

“Continue offering hope to the hopeless and Allah (God) will never forsake you. Your positive impact on the youth especially in the Zongo communities will surely pay you off,” he said.

The Chairman for the African Business Center for Developing Education (ABCDE), Dr. Ekwow Spio-Garbrah who served as the chairman for the programme commended the Afro-Arab Group for choosing a theme that shows belief in the Ghanaian youth.