The Ghana Association of Microfinance Companies (GAMC) is building the capacity of members to successfully sail through operational processes under the Bank of Ghana’s new rules and guidelines. The companies are to operate under the second tier of regulated microfinance institutions, which includes susu companies taking deposits and making profits. Firms under this category are expected to hold an initial minimum paid-up capital of not less than Gh¢100,000.00 for one unit office. Northern Sector Vice-President of the GAMC, Nicolas Osei told Luv Biz Report the new regulation is in the interest of both the public and the industry. “Regulation is not easy but a society that is not regulated does not function, so we don’t have a choice. It’s something that [need] and I think we welcome it. We just have to do everything we can to get ourselves regularized so that we can help the economy grow in the area of poverty alleviation and also job creation and be able to give micro-credit to people to expand their businesses, to pay tuition, to rent houses [etc]”, he stated. The new licensing requirements are expected to take effect by January 2012. Mr. Osei noted the new capital requirement should not cause any challenge for businesses in the microfinance sector. He acknowledged that “GHS 100,000 is a lot of money but it’s not money that you have to go and pay cash down; it’s money you have put into the business and you should be able to prove that you’ve put that money into the business… all BOG wants is for us to be able to stand the shocks”. Credit Unions also fall under the second tier, but a Legislative Instrument is yet to be passed to regulate activities in the sector. The Bank of Ghana has increased regulated activities under the Non-bank Financial Institutions Act 2008 from a single tier to four tiers, to include Susu companies, Susu collectors, money lenders and Financial NGOs. Story by Kofi Adu Domfeh/Luv Fm/Ghana