Project overview Volunteer Partnerships for West Africa (VPWA) operates a microfinance project in the GA West District of the Greater Accra Region in Ghana. This extends financial services to segments of the population that have been neglected by mainstream banks. In particular the VPWA micro finance project provides loans to low-income women in the district, allowing them to set up and to grow small enterprises. The project started in 2009 and to date 60 women have received microcredits. In addition to the provision of loans, VPWA supports the beneficiaries with essential business skills training, such as bookkeeping. The aim of this project is to support the economic participation of women, promote gender equality and improve the welfare of the beneficiaries. To grow the micro finance project VPWA would like to establish a network of donors, whether individuals, companies, donor agencies or trust corporations. Why is this project important? Sub-Saharan Africa and especially Ghana is burdened by extreme poverty and faces significant challenges as it tries to meet the Millennium Development Goals (MDGs). 44.8% of the population of 22 million is living on less than one dollar a day, whilst 78.5% of the population lives off less than two dollars a day. Microfinance is proven to be an effective and efficient means to combat poverty. However, in Ghana only about 300.000 people are currently benefiting from microcredit. Many more people could benefit from this help and therefore it is important to expand micro finance programs in the country.  How does the VPWA's micro finance project work? The VPWA's micro finance project uses a Group Lending Methodology (GLM). This requires beneficiaries to form a 'solidarity group' with a maximum of four people. The group then joins other groups to form a centre (with a maximum of 5 groups). By doing this the group members guarantee each other's loans (group guarantee scheme). Volunteer credit officers provide all the beneficiaries with business skills training before they receive their first loan payment. The borrowers have to repay the loan within a four month period. Repayment begins on a weekly basis at our VPWA Microfinance Centre a fortnight after they have received the loan. The group are only able to receive new credit when all of the group has fully paid back their outstanding loans. The selection of beneficiaries who are eligible for microfinance credits is based on various economic and social criteria.
 Background of VPWA VPWA is a grassroots NGO with a variety of successful projects currently operating in Ghana; from supporting schools and health centres, to micro-finance initiatives and programmes to encourage freedom of information through the creation of media forums. Our mission is to assist deprived communities in West Africa with solutions-oriented advice and engagement that will help people to lift themselves out of poverty. We focus on empowering people, particularly the young and disadvantaged groups, so that they can become agents of proactive change within their local communities. We achieve this by providing experiential learning, training and engaging in cultural exchange. For more information, refer to our website: www.vpwa.org |
|
|
|
 Green Ghana Project      VPWA IS AN NGO PARTICIPANT OF UNITED NATIONS GLOBAL COMPACT  |
Microfinance |