Ekumfi Egyankwa Community Development Fund, December-January 2012 Updates
From January 6th to 15th 20 students from Columbia University became the third Microfinance Brigade overall and the first US university to work in the community of Ekumfi Egyankwa. Since its founding in February 2011, the Egyanwa Community Development Fund has provided over 160 adult savings accounts, over 170 child savings accounts and has made over 30 micro loans. Key challenges identified by the Columbia brigade in their first few meetings with the Fund Leadership were the need for more simplified and intuitive loan forms, capitalization of the Fund through the implementation of the shareholder model, and leadership development for the 10 board members of the Fund.
With the successful launch of the shareholder model by way of a financial education workshop held for all potential share purchasers, Egyankwa has sold 471 shares out of an available total of 500. With a matching program backed by Columbia’s Community Investment Fund, a total of 1,000 shares will be in circulation for this fiscal year with 58 still available, generating 5,000 Ghana Cedis worth of capital in all. As a prerequisite for the release of the matching funds, Columbia asked that Egyankwa’s reserve ratio of savings to loans in circulation be raised to 50%. In initial follow-up meetings with the leadership, Microfinance Field Officer William Offei reinforced the importance of waiting for this ratio to be reached and allowing existing loans to be repaid prior to granting new loans for the long-term sustainability and financial stability of the Development Fund.
Other initial allocations of CIF were also made, including the commissioning of new bookshelves and supplies for the Fund office as per the request of the leadership. On behalf of a private donation of 75 GHC made to Bright Bronya (Egyankwa’s “best dancer”) from a member of the Columbia brigade, a child’s savings account was opened towards his future education. William assisted Bright’s mother in gathering the necessary documents and photo for the paperwork and she expressed deep gratitude for the savings fund for her child.
Challenges and objectives to be addressed in future follow-up site visits include:
1) An accounting workshop to review the skills necessary to accurately balance the Fund ledgers
2) A refresher course for all leadership members on the basic paperwork and processes of the daily functioning of the office
3) Review of the new loan process and accompanying forms prior to any future loan approval/disbursement.
More updates coming soon!
