Microfinance saga: MPs predict economic downturn in Brong Ahafo

There are growing fears of an economic downturn in the Brong Ahafo region following the financial troubles of some microfinance companies.

Today New Patriotic Party MPs from the region expressed concern about the inability of microfinance companies such DKM and GOD is Love to meet their obligations to clients.

The worst cases are those of DKM and God is Love which are holding million of clients’ funds despite an order from the Bank of Ghana to pay up.

The incident, the MPs claim has culminated into scores of deaths in the area.

Speaking to JOYNEWS, the MP for Sunyani East, Kwasi Ameyaw-Chremeh said residents have lost up to 200 million cedis to the microfinance crisis in the region.

“It is millions. All of them put together will be more than 200 million of cedis,” he said, adding, already there is economic slowdown in Sunyani and Brong Ahafo in general.

He named residents in Nkoranza who are predominantly maize farmers as some of the most affected residents.

“The whole of this year people did not farm,” he said, adding their investments were locked up in the financial deal.

“We will be starving next year. People who were doing businesses, or buy and sell have also been affected.”

But it is not only Brong-Ahafo residents who were affected; some people in the Upper West region have also lost monies.

A resident told JOYNEWS the affected clients of the microfinance companies will embark on a demonstration in the New Year in Nandom.

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