Magdalene Sey
27 August 2008
The Council for Indigenous Business Associations (CIBA) has started a pilot scheme to set up an endowment fund, to mobilize funds from members to qualify for loans.
The mobilization of funds, which will be done with daily contributions of GH¢1 for a period of six months, will qualify members of the association for a loan of GH¢300 to expand their businesses.
This was disclosed by the National Executive Secretary of CIBA, Mr. Ralph Ameyaw, at a workshop organized by the Ghana Employers Association (GEA), on capacity building for small business associations, and CIBA executive members in Cape Coast last week.
The purpose of the workshop was to expose members of the association to resource mobilization, which was a key factor in sourcing funds by the associations.
According to Mr. Ameyaw, the required consultancy report had been submitted, and a pilot scheme had also commenced at Koforidua, in the Eastern Region, to set up the fund.
He said the fund would appoint its own board of trustees, elected from member associations, as well as appoint fund managers and controllers from recognized financial institutions to manage it.
Mr. Ameyaw said sensitisation programmes were being organized, to educate members to contribute regularly to the fund, so as to generate more funds to expand their businesses.
He said the fund would involve the payment of pensions, and provision of mortgage facilities for members who have lacked social protection for years.
Mr. Ameyaw noted that CIBA and GEA were embarking on training workshops, to meet the requirement of the Ghana Poverty Reduction Strategy (GPRS II), that establishes growth and capacity building of trade associations, by providing appropriate interventions to their members, who form about 86% of Ghana's active working population.
The Senior Manager of Industrial Relations at GEA, Mr. Joseph Amuah, advised members to register their businesses, to be able to get access to loans to improve their businesses.
He noted that most people did not register their businesses, because they wanted to evade taxes, indicating that registration of one's business would rather bring their businesses to the recognition of government, and guarantee them the right to legal action.
The Central Regional Chairman of CIBA, Mr. Ekow Malik Arthur, called for the critical examination of challenges, such as lack of knowledge of advanced technology, facing trade associations, to enable small and medium enterprises to grow.
CIBA was established under the PNDC Law 312, on May 5, 1993, to bring together some registered associations in the informal sector, to monitor their operations with a view of recommending improvements.
The associations is made up of hairdressers, auto mechanics, dressmakers, drinking and chop bar operators, as well as electricians, among others.
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