Saving Is Best Option For The Poor– VSLAs Expert Advocates

Pix of VSLAs Elsewhere in Africa

An expert in the formation and management of Village Savings and Loans Associations (VSLAs) Apam Leticia, has recommended money saving as the best option for the poor and vulnerable to enable them disentangle themselves from poverty. 

According to her, with regular savings, the poor and vulnerable who have no capacity to borrow money from the bank, are able to depend on the little that they save over a long period of time to start a small or medium enterprise and with determination, grow bigger with the little profit accrued from sales made.

Speaking to Savannahnews on the sidelines of a two-day job and entrepreneurship fair in Tamale, Ms Apam also urged Ghanaian youths to begin to save part of the little money that they get from parents or earn from work they do for people, so that they can start a business of their own.

She noted that in this 21^st century, entrepreneurship is the best option for young people who want to be successful and rich, and not through employment offered by government, corporate institutions in the private sector or fraud. 

VSLAs are groups formed by the poor to provide sustainable and profitable microfinance services especially in remote places with no access to formal financial services. 

VSLAs are self-managed groups that do not receive any external capital and provide members with a safe place to save their money, acquire small loans, and obtain emergency insurance. They focus on building savings and assets, and provide credit proportionate to the needs and repayment capacities of the borrowers.

Groups are low-cost, simple to manage, and can be seen as first step for people to reach a more formal and wider array of financial services. VSLAs often raise the self-respect of individual members and help to build social capital within communities, particularly among women. 

The concept was originally developed in Maradi, Niger by Care International in 1991 and has spread to 33 countries in Africa, three in Latin America, and seven in Asia. Currently, there are almost three million VSLAs active participants worldwide. 

Mrs. So Abapa Boateng, YEfL

The job and entrepreneurship fair organised by non-governmental organisation Youth Empowerment for Life (YEfL) under the theme: “Alternative Ways of Business Financing; The VSLAs Approach”, brought together 75 youths from the Kumbungu, Savelugu-Nanton and Tamale Districts.

Field Officer of YEfL, So Abapa Boateng, observed that it is very difficult for young people who are beginning life to raise capital to do business due to lack of collateral and other commitments demanded by financial institutions. Thus, the fair she said, aimed at teaching the youth about the essence of saving money, and also encouraging them to adopt the VSLA approach of raising capital to do business. 

Meanwhile, Mrs. Boateng was hopeful that, with the knowledge and expertise acquired from the fair, many of the participants could become financially independent and successful in future if they put it to good use.

Northern Regional Peace Council Charged To Be Impartial

Northern Regional Minister

The Northern Regional Minister Alhaji Mohammed Muniru Limuna has charged the newly inaugurated Northern Regional Peace Council (NRPC) to avoid any form of political, ethnic and religious bias in the discharge of their duties during their tenure of office.

“All of you members either belong to a particular religion, a particular tribe or a particular sect. Please remove those your caps. You’re a member of the Regional Peace Council and you must bring your expertise to bear. I’ll not hesitate to recommend the withdrawal of any member who will try to use your office in your own interest”, Alhaji Limuna warned as he addressed the inauguration of the 10-member Council in Tamale.

The Minister also admonished them against interfering in the work of the police trying to cajole or coerce them to release perpetrators of crime all in the name of peace, adding that, “as much as we need peace, fomenters of trouble must be made to face the law so that it will serve as deterrent to others”, he emphasised.

A Board Member of the National Peace Council (NPC) Sheik Mahmoud Gedel who swore-in members of the NRPC, charged them to prevent and reconcile factions involved in conflict in the region in order to promote peace for sustainable development.

He also urged them to work hard to consolidate the relative peace in the area and promote national unity, citing that recent clashes between Bimoba and Konkomba ethnic groupings in the Bunkpurugu-Yunyoo District as well as the alleged murder of the overlord of Bimbilla, to some extent, have derailed successes chalked in peace efforts in the region.

Sheik Gedel told the Council that they have a responsibility of playing an advisory role to the Northern Regional Security Council in matters of peacebuilding and conflict prevention as well as educating the public on the need to cultivate peace.

The NPC was established by an Act of Parliament (Act 818, 2011) with the mandate to facilitate and develop mechanisms for conflict prevention, management and resolution of disputes to build sustainable peace in the country. By the end of July, all Regional Peace Councils which are subsidiaries of the NPC would have been inaugurated.

Meanwhile, the Roman Catholic Archbishop of Tamale Most Reverend Philip Naameh who is a member of the NRPC, said high illiteracy rate, poverty and underdevelopment of the region and growing perception among some ethnic groups that others are subservient groups to them are the reasons for some of the recurring conflicts in the area which ought to be addressed.

He pledged the unfailing commitment of all members of the NRPC to work hard to ensure that there is lasting peace in all conflict areas of the Northern Region.                           

Police Blamed for Death of Bimbilla Chief

N/R Minister

The Northern Regional Security Council (REGSEC) has indicted the Police and the Military for their alleged security lapses and negligence that led to the unfortunate murder of the Paramount Chief of Bimbilla, Naa Dasana Dawuni Andani and four others in Bimbilla last Thursday. Five other persons including a four month old baby also sustained injuries and are still on admission at the Tamale Teaching Hospital. 

According to the Northern Regional Minister and Chairman of the REGSEC, Mohammed Muniru Lemuna, the gruesome murder of the Chief was carried out by the unknown assailants after the Police personnel on guard at the Chief’s palace had unjustifiably vacated their posts. 

At a Press Conference in Tamale, the Minister asserted that the Police personnel detailed to the Palace were supposed to wait till the soldiers take over from them in the evening, but rather shut down entire security network at the palace and left the place vacant for the assailants. 

Alhaji Lemuna insisted that the matter was being investigated by the authorities to ascertain why the police put up such behavior and who actually ordered them to vacate their posts.

The Nanumba North District Chief Executive, Alhaji Ibn Abass and the District Police Commander have since been invited by the REGSEC for questioning. 17 other suspected persons have also been arrested by the Police in connection with the incidence. 

The Minister said that he had moved to Bimbilla together with the members of REGSEC to meet the District Security Committee and also visited the palace of the late Naa Dasana Andani. 

The REGSEC, he said had since deployed more troops to Bimbilla and its surrounding communities such as Makayili and Wulensi to deal with any likely spillovers.

The Council in accordance with a directive by the Interior Ministry, according to the Minister had also reviewed the Curfew in Bimbilla town from 9:00pm to 5:00am to 6:00pm to 6:00am making it dusk to dawn curfew.  

He said that the incident was a betrayal to the REGSEC since all the two sides in the Chieftaincy stalemate had earlier been engaged by REGSEC in several meetings and had reached an amicable resolution on 30^th May 2014.

Alhaji Lemuna said that the REGSEC in no uncertain terms condemned the heinous crime and however appealed to the people in the area especially the affected persons to exercise restraints, whiles government and the security investigate the matter.

He said that government was determined to pursue the perpetrators and bring them to book without shielding any of them. 

Meanwhile, the Defence Minister, Mark Owen Woyongo who doubles as Acting Interior Minister, the Inspector General of Police, Mohammed Alhassan, the Northern Regional Minister, Alhaji Mohammed Muniru Lemuna and the Regional Police Commander, DCOP Ken Yeboah as well as other members of REGSEC have visited Bimbilla with Helicopter of the Ghana Armed Force.

Govt Must Address Issues Of Women Empowerment–CBOs Urged

Nana Oye Lithur, Min. Gender/Children

Stakeholders from various Community-Based Organisations (CBOs) under the Ghanaian Developing Communities Association (GDCA) in the Northern Region of Ghana have resolved after a three-day conference in Tamale, that in the interest of promoting decentralization government must address critical issues affecting women empowerment with all the commitment they deserve.

Under a theme: “Over two decades of decentralization in Ghana; Prospects and Challenges”, the conference brought together CBOs from 19 districts of the operational area of GDCA and over the three-day period discussed women inclusion and partisanship in the local governance system.

In a communiqué issued after the conference, the CBOs observed that, to promote women participation and representation at the Metropolitan/Municipal/District Assemblies, 80 percent of 30 percent government appointees slot should be given to women. This, they noted, would enhance women representation and participation which is currently inadequate in the various Assemblies in the country particularly in the Northern Region. 

The communiqué signed by Ms Mariama Yakubu, CBO Regional Chairwoman, further observed that political party structures including election process from ward level to national are not friendly to women. This trend, they said, must be reverted, stressing that “government, political parties and other collaborators must work to ensure that fertile grounds are created for women participation at all levels of the society”.

They also bewailed that there is still confusion among community members and their leaders on the position of women in terms of leadership. “Cultural activities still see women to be providing support instead of leading. To revert this stance, Traditional Authorities as well as community members should accept women as partners in development and beyond”, the communiqué recommended.

It was established that there is indeed partisanship, DCEs favouring political party allies in the Assemblies with contracts and other favours. “The election of right calibre into the Assembly should be adhered to in order to avoid square pegs being put in round holes”, the communiqué said.

The CBOs also reiterated calls on government to make the position of MMDCEs elective in order “to ensure that MMDAs are people owned and not by political party leaders”. Adding that, this would ensure that MMDAs are answerable and accountable to the people.

The communiqué further emphasised that, the 30% of Government Appointees into the Assembly must be given to the right calibre of people as stipulated by Act 462 of the Constitution. “We the participants would like to add that consideration should be given to technocrats whose expertise can inure to the benefit of the MMDAs”, the communiqué indicated.

Discontentment Among Residents of Oil City

Drop of oil

The pomp and pageantry that heralded the news of petroleum discovery in Cape Three Points in the Western Region of Ghana, right from the corridors of government to traditional palaces and homes of ordinary citizens in 2007 seems a bit too different today.

Open expressions of discontentment, disenchantment and dwindling hope on the faces of almost every resident of the Takoradi Metropolis is much glaring when the question of “how are they feeling the impact of petroleum production in their lives” is posed to them.

The high hopes and anticipation of having their lives turned around probably within a short period are beginning to wane as some residents openly told Savannahnews in separate interviews that the government has let them down.

Undisputedly, the Western Region produces a bulk of the countries natural resources such as gold, diamond, bauxite, cocoa, timber and now petroleum. But, it is still faced with some teething development challenges such as poor railway network, bad or inaccessible roads, polluted water bodies as a result of illegal small scale mining activities, water and sanitation problems among a few others.

Thus, it is not surprising that, residents of Takoradi, a town nicknamed –“The Oil City”, are not seeing the benefits of the new natural resource. This is in spite of the fact that, Ghana has earned revenues totaling over US$1.9 billion from the resource up till date. 

Lucy Quayson is a food vendor, and she tells this reporter that, since petroleum production started cost of living has risen to an all-time high leaving in its wake a heavy burden on parents whose responsibility it is to take care of their children’s school fees, medical bills, feeding and payment of rent.

“A jelly can of water is 0.40GHP….you buy GH¢10.00 of power and it won’t take you beyond two days. We’ve heard of the oil but we can’t see anything positive happening in our lives. Even the food I’m selling is not bringing the expected returns”, she remarked.

Kofi Oduro, a mason and father of six children expressed frustration in his interview with this reporter. According to him, it is difficult for one to get a job in the oil sector unless one knows somebody in government or in authority somewhere to facilitate his/her’s application.  

He said: “We want President John Mahama to use Ghana’s share of the oil money to open a training centre where we can be trained as artisans to work in the oil sector. He should also make the free education possible so that we can enrol our children in school. 

“We’re energetic young men willing to work and take care of our family. But because of lack of job opportunities further compounded by family pressures, some of us have now taken to alcoholism. There are some people who have reached retiring age but have refused to retire and instead, sign new contracts to continue to work, thereby making it impossible for job vacancies to exist”, Mr. Oduro lamented.

Before oil was discovered, accommodation of all kinds in Takoradi according to residents was generally affordable for the average person. Between 2007 and 2012, a single bed room went for GH¢5.00 or GH¢10.00 a month. But currently, a single room is between GH¢60.00 and ¢100.00 a month whereas a chamber and hall or three and four bed rooms with veranda, bathroom and toilet is between GH¢160 and GH¢250.00 and GH¢350.00 and GH¢400.00 a month respectively.

Takoradi township

One taxi driver popularly known as Justice acknowledges the fact that, the Western Region has a lot of natural resources. But sadly, he says, the rate of development in the region does not correspond with the level of wealth and resources in the area.

“There are no jobs for young people to do. Even those with capital to establish business are not succeeding. Many of the young guys now are into sakawa (money rituals/internet fraud) and prostitution. Even married women are forced to commit adultery in order to make ends meet. Those who are not yet married are also breaking up due to infidelity caused by economic hardship.

“Look at our roads….manholes everywhere. The distance from Effia-Nkwanta to Afigyai is more than from Tarkwa to Bogoso. If you travel on this stretch of the road you’ll definitely take your vehicle to the auto mechanic”, Justice observed.

A landlady by name Judith who spoke to this reporter on phone, said a single bed room in her house is GH¢70.00 whereas a chamber and hall with toilet and bathroom is GH¢160.00. She charges an advance of two years.

There are newly established executive hotels now in Takoradi and some residents’ claim that is an indication of a boost of the hotel industry triggered by the petroleum production. 

But Cadmond Dadzie, Vice President, Sekondi-Takoradi Chamber of Commerce, said that assertion cannot be true because the establishment of new hotels in the Takoradi Metropolis came as a result of the 2008 African Cup of Nations hosted by Ghana. 

According to him, due to the too much hype given to that tournament quite a number of hotels sprang up. But unfortunately, some of them he said could not meet the required occupancy standards and remained dormant since then until recently they started to revive. 

Mr. Dadzie observed that, the bad nature of roads in most parts of the city has also made office accommodation in a few attractive locations costly, because demand for offices in such locations has outstripped supply. 

He also noted that, the boom in the petroleum sector is not as huge as a lot of people are seeing it but hope that will happen only when the TEN project eventually comes on board to boost current oil production levels which is just a little over one hundred thousand.

On his part, Member of Parliament for Takoradi Constituency Kwabena Okyere Darko Mensah agreed with claims made by residents interviewed by Savannahnews. He also observed that, the expansion of the Takoradi Port which is supposed to be completed with a Chinese Development Bank loan has hit a snag due to delay in the disbursement of the loan, adding that “a lot of the major roads are linked to the port and if they are constructed, it will open up the place and new jobs will spring up”.

He further observed that, there are some jobs such as stewardship, cooking, shipping management among others that can be done by local business people who have the capacity but a lot of the time such opportunities are given to people in Accra to do and that is not good. 

He urged government to encourage all oil companies to relocate their head office to Takoradi so that a lot of their contracts can be bid by local companies who have the capacity to execute them.