The impact of Credit Unions on Economic Development of Ghana: a case study of Kuapa Kokoo Co-operative Credit Union Ltd
Date
2008-08-16
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Abstract
The study attempted to assess the impact of credit unions on economic development of Ghana using Kuapa Kokoo Cooperative Credit Union Ltd (KKCU) as a case study. Because of the number of programmes developed and implemented by the government to establish a strong progressive economy and improve the well being of all Ghanaians and the increasing significance of credit union to tap monies in the rural areas, there is the need for a study to be carried out to access how credit unions have mobilize rural savings , the contribution of credit unions on economic development of Ghana, their products and services offered vis-a-vis the needs of it members and the constraint and factors that affect rural savings. A study was undertaken using questionnaire and interview approach. Data were processed using Microsoft excel.
The study revealed that credit union is a not for profit institution and members joined mostly because of the easy access to loans. KKCU credit processes are efficient and fast and they require no collateral making their loans the most preferred form of credit. Credit union members are not typically 'unbanked'. KKCU has indeed provided financial support to the farmers who are their target group in terms of education, health, farming, and to redeem cocoa farms of members which has been mortgaged to money lenders and etc. Credit unions have contributed positively to economic development. Credit unions have introduced bobrapa boxes to help mobilize savings. Savings mobilized increased steadily from 2000 to 2004, and started decreasing from 2005 to 2007.lt is therefore recommended among other things that credit unions must intensify their savings mobilization by putting in place innovative schemes to retain and attract more people to the union.
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A thesis submitted to College of Arts and Social Sciences in partial fulfilment of the requirements for the award of Master of Business Administration (MBA), 2008