Accra Credit Union- Giving Steem to Dreams

Accra, July, 2018.

A typical loan application from the ubiquitous Savings and Loans agencies dotted all around the city may take mere minutes or days. They collect the savings of people who normally generate an income daily, namely small and medium scale businesses who would like to save this income on a short term basis.The interest accrued on such savings is quite minimal.

On the other hand, another small business seeking funds may apply to these agencies. The loans are processed and a hefty interest rate imposed. Surprisingly, the loans are in high demand, simply because the options are pretty limited- the big banks ordinarily would not consider a small or medium business a good investment and funding from shrewd loan givers are even taxing since interest rates of up to a 100% are pretty common.

The lack of initial capital or cash injection into new start ups is a major linkage to poverty growth among young people in Ghana.

To elucidate better, let's look at the data. Ghana's population is overwhelmingly youthful. Over 65% of the population is under 30. At the same time, unemployment rates within this cohort is over 35%. According to Government statistics, the formal sector is over satured and unemployment chances in this sector are almost negligible.

Thus, most people young and old, are involved in the informal sector, ie, hairdressers, tailors, photographers, shop owners and the like.

Yet, poverty prevails because most people struggle to pay for the equipment or necessities needed to start an income generating endeavour. For many young people, all they need is their first hair drying machine, sewing machine, shop space or even a camera to kick off a profitable business venture.

This is where the Accra Credit Union steps in. As a cooperative focused on mutual growth, the power of Steem is our major tool for lifting poverty off people.

Credit Unions identify worthy enterprises and members agree to invest in them not for the profit but to provide funds necessary for the financial growth of the relevant member.

The Accra Credit Union is poised to deliver such support and more. The Union would place in the hands of trustworthy entrepreneurs a loan agreed on by the credit union which would of course, be paid back.

Unlike banks or savings and loans agencies, which require and actually seize collateral in the case of a default in repayment, the main requirement from the Credit Union is trust and a preference for investments in productive assets.

Distinctively, a pay back of the loan is flexible and considerate to enable and empower small business grow and the growth of the cooperative society.

Nonetheless, the lendee shall lodge keys to his or her Steem account with the Credit Union as a guarantee or safety valve.

This is the envisaged pathway of delivering a means of achieving financial strength to entrepreneurs without the burden of the treacherous banking system wilting their dreams.

The Accra Credit Union is very much interested in providing a means of wealth creation to all.

Let's Steem the Dream.