Development Of MSME Cashflow Loan (MCL) Concept

Development Of MSME Cashflow Loan (MCL) Concept


MGA Consulting Ghana Limited (MGA Consulting) in collaboration with the German Sparkassenstiftung for International Cooperation (DSIK) and the Ghana Co-operative Credit Unions Association (CUA) developed an MSME Concept and a capacity-building program on Effective Cash Flow Lending which provided an innovative credit facilitation concept and system for the CUA.

The concept of MSME Cashflow Loan (MCL) has been developed to support Credit Union members in Ghana with a loan concept that has flexible terms and conditions to improve their credit operations.

The first phase was the development of the MCL Concept which was piloted in 2022 in five Credit Unions in Takoradi in the Western Region of Ghana. Following the pilot phase, further stakeholder engagements were conducted for interest groups including Key Officers of the selected Credit Unions, CUA, and DSIK. In 2023, MGA Consulting reviewed, enhanced and developed other new models of the MSME Cashflow Loan Concept and conducted a training of trainers (ToT) program for the Credit Unions of Ghana.

The training program involved the of training selected trainers from the Credit Unions. This equipped the trainers with the skills, knowledge, and techniques to deliver effective training to their Credit Unions. This enables Credit Union members to have the necessary skills to undertake effective credit activities for MSMEs efficiently, leading to improved financial stability for their clients and profitability for the association.

The efficacy of the MCL Concept has paved the way for its acceptance and implementation nationwide.

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