Business News of Saturday, 24 March 2018
Source: Addo Darko
The Bunso Cocoa Credit Union and Tafo Credit Union in in the Eastern Region of Ghana have completed a merger as part of the Bank of Ghana (BoG), directive to better serve its customers.
It could be recalled that, the BoG in 2017 issued a directive to all non-banking financial institutions to consider merger and acquisition in order to expand its portfolio as part of licensing requirement.
To this effect, management of Tafo Credit Union and Bunso Credit Union have taken the initiative, and have completed first merger of its kind in the country.
The two financial institutions are now known as Cocoa Research Credit Union, with its traditional blue, red and white colours.
The colorful inauguration ceremony, which took place at Tafo Cocoa Research Institute of Ghana (CRIG) on March 15, saw high profile dignitaries including financial stakeholders, BoG officials as well as traditional rulers.
Speaking at the event recently, the Chief Executive of Credit Union Association (CUA), Nana Kwesi Agyapong stated that it has become necessary for non-functional credit unions and cooperative financial institutions across the country to merge with formidable ones in order to help drive the financial inclusion sector of the economy.
Mr Agyapong addressing dignitaries stated that many customers in Ghana are now shifting focus and transactions from the core traditional banking systems, and are now dealing with various electronic payment systems due to mobile money penetration.
He therefore insisted that there is the need for financial houses to unite their fronts so as to stay vibrant and relevant in business.
The CEO in his address revealed that, the entire assert portfolio of the two credit unions are currently standing at GHC14.5million.
However, management of the unions will not relent on its past glory, but will work hard to entice Abuakwa North teachers and the entire Bunso community onto the new Cocoa Research Credit Union.
The CEO in his final submission mentioned that, leadership of the credit union have already rolled out some innovative products as well as new strategies to help build the capacity of both board of directors and the entire staff members to serve customers better.
On his part, the traditional leader of Tafo, Osabarima Adusei Peasah speaking at the inauguration expressed his excitement about the new initiative spearheaded by the leaders of the two credit unions.
The Chief in his address urged on all workers in the environs of Tafo and Bunso to jump onto the new Credit Union to avoid being duped by Ponzi schemes.
Osabarima Adusei further called on managers and all workers of the financial institution to demonstrate high sense of professionalism in dealing with their customers and all stakeholders of the union.
The Ghana Association of Credit Union Managers (GHACUM), records show that there are about five hundred and thirty (530) credit unions doted across the country, but only a handful of them are non-functional.
However, out of this numbers, only one hundred of these credit unions report their audited accounts to the Bank of Ghana annually.