Global Brigades Ghana: Ekumfi Ekotsi Community Development Fund, December-January Updates
Since its founding in March of 2011, the Ekumfi Ekotsi Community Development Fund has grown from a small operation of only a couple hundred savers to a fully functioning savings and loans cooperative based on a community shareholder model.
From December 27th to January 5th, 22 students from the University of Southern California joined the leadership of the Ekotsi Fund in a collaborative 3-part project over the course of a 10 day Microfinance Brigade, becoming the first US Microfinance brigade in Ghana. Through community household visits and meetings with the Fund leadership, the USC team identified a need for a new loan application process, a compensation model for the leadership, and further training and community outreach on the role of shareholders in making the Fund self-sustaining.
During the brigade, students were able to address these three main needs through the implementation of a new loan application form, a compensation model based on performance of leadership roles and responsibilities, and finally the sale of 800 total shares to community members through a matching promotion with an accompanying financial education clinic. Since the brigade, Global Brigades Microfinance Field Officer William Offei has conducted 2 follow-up site visits with the purpose of monitoring the success of the new systems implemented as well as dispersing the Community Investment Fund. In his first visit, William allocated the CIF for the matched share purchases, which was successfully deposited in the Fund’s formal bank account. Provisions were also made for shelves and the framing of a photo of the USC team with the Fund, both of which should be completed within the coming week.
On William’s second visit with the Ekotsi Fund, the loans committee requested his assistance in the first round of loan application assessments. Since the introduction of the new loan forms, 17 applications were completed. Upon review, only two of the applications met the assessment criteria outlined in the assessment materials provided by the USC brigade, with another 6 applications under review pending further completion of missing information. Nine applications were declined due to issues relating to their ability to repay the loan, unqualified guarantors, and/or poor savings history. This loans assessment procedure was attended by the Fund President Mr. Eshun, Vice President Madame Alice, and Loans Committee Chairman Mr. Yartel.
Three areas of weakness to be addressed in future follow-up meetings include:
1) How to balance the Fund’s ledger with accurate accounting
2) How to better organize and handle the safe box of daily transactions and petty cash
3) How to ensure the confidentiality of account information.
