By Mildred Siabi-Mensah, GNA
Shama (W/R), March 7, GNA – The Shama Cooperative Credit Union (SHACCU) in the Western Region has recorded a significant growth in assets, operating income and shareholders fund.
The credit union, with a capital adequacy ratio of 18 per cent and a delinquency rate of two per cent increased its operating income from GH¢2.7 million in 2016 to GH¢3 million in 2017 and recorded a surplus of GH¢131,029.34.
Mr Kwaku Nyarko Addo, Chief Executive Officer of the Credit Union, said the growth in total assets, which moved from GH¢12.2 million to GHC14.3 million, was largely funded by the 19 per cent growth in deposit.
In the 2017 fiscal year, deposits increased from GH¢9.4 million in 2016 to GH¢11.5 million, while shareholders fund grew by 19.4 per cent from GH¢1.5 million in 2016 to GH¢1.9 million in 2017.
The CEO at the ninth annual general meeting of the Credit Union said the union disbursed loans totaling GH¢8.5 million to 3,608 members in 2017 to engage in commerce, agriculture, education, health and shelter among others.
He, however, said performance at the remote villages such as Wassa Manso and Sekyere Krobo dwindled due to the halt in small scale mining, while the continued fall of the Treasury bill rate affected interest on fixed deposits.
The credit union, according to him, continue to put in place prudent financial and operational management in the face of the challenging economic conditions, adding that, “Our members have persistently maintained confidence in our brand: members’ loyalty remained high in 2017”.
To give much attention to rural enterprises, the credit union has created the rural enterprise desk to identify and support rural micro and small entrepreneurs to improve on their livelihoods and create employment through training and financial support.
Mr Addo said SHACCU in collaboration with the Business Advisory Centre and the Department of Cooperatives were organizing the formation of co-operatives among same crop farmers and people of the same trade to facilitate lending to improve local businesses.
He pointed out that SHACCU with its vision of becoming the most preferred and proactive credit union in the country had also launched a mobile money transaction to enable clients to engage in that services, “an ATM would also be mounted at our Komenda branch to enable our clients to have a 24 hour access to funds”.
Reverend John Wesley Acquah, Board Chairman, said power disruption, inflation and exchange market placed a huge task on businesses.
He explained that the domestic debt per GDP reduced from 73 per cent to 68.3 per cent in 2017, yet conditions for businesses kept worsening.
“We still wish to encourage all the customers to buy the minimum share or increase the minimum shares to improve the financial base for growth and ultimately increase dividends.”
On Corporate Social Investment, the union made numerous donations to the Twin-City special school, SEKDEAF, a hole in heart patient and district farmer's day celebration.