Credit Unions Vital For Socio-Economic Development

Dr Yaw Forkuoh, Senior Lecturer at the Department of Pharmacy of the Kwame Nkrumah University of Science and Technology (KNUST) has said credit unions are potentially important institutions which help to reduce poverty among people.

He therefore appealed to the government to channel Poverty Alleviation Funds through the credit unions for disbursement to people as loans to help them improve their incomes and livelihood.

Dr Forkuoh was addressing the first Annual General Meeting (AGM) of the Ashanti Regional Chapter of the Association of Credit Unions Limited for the 2008 at Kumasi in the Ashanti Region last Saturday.

The theme for the occasion was: "Credit Union: The Best Option for Reliable Partnership in Socio-Economic Development."

He said loan delinquency has been a major problem facing the unions and asked the management of the unions to take the necessary steps to ensure that loans granted to their members are paid on time for others also to benefit.

Dr Forkuoh stressed the need for the unions to invest in viable ventures to help them grow and develop at all times.

The Senior Lecturer asked the management of the unions to embark on giving training to their staffs to enhance the performance of their duties.

Mr Edward O Darko, General Manager of the Credit Unions Association (CUA) of Ghana said the unions have over the years played a crucial role in socio-economic development.

He said the financial support from the various unions to their members have helped to expand their businesses and improve their living conditions.

The General Manager appealed to the unions to intensify their educational programmes to help increase the membership of the unions.

Mr Ken Dankwah, Chairman of the Board of Directors of the Ashanti Regional Chapter of the Credit Unions Association Limited in his report said total assets of the Association increased from GH¢22,688,508 in 2007 to GH¢30,016,425 in 2008 representing about 32 % increase.

He said total shares of the union also rose from GH¢1,657,773 in December 2007 to GH¢2,218,470 representing 34 % and hoped to increase it to GH¢3,100,000 by the end of this year.

Dr Kwesi Prah, Rector of the Kumasi Polytechnic, commended the unions for their immense contributions to the socio-economic development and asked them to continue with the same zeal towards the accelerated growth of the country.

Source: GNA