Boafo Microfinance Services Makes First Loans in Ghana

ILVER SPRING, Md., April 27 /PRNewswire-USNewswire/ -- A new joint venture between CHF International and Ghana's HFC Bank disbursed its first microcredit loans to low-income residents living in the capital of Accra.

Boafo Microfinance Services, Ltd. will enable a better quality of life for thousands of Ghanaians who would have otherwise been denied credit in the formal sector. Boafo brings to bear the combined strength of CHF International's expertise as a leader in microfinance and HFC's status as one of Ghana's premier commercial banks. It will provide loans to

thousands of micro and small enterprises, home owners, and to families for education, healthcare or other household necessities.

Boafo's formal launch took place at an inauguration ceremony last week. At the event, Ghana's Deputy Minister of Finance and Economic Planning, Professor George Gyan-Baffour, commended the Boafo initiative. He said, "HFC's partnership with CHF International to provide financial services at the grassroots is a laudable and well thought-out strategy."

Michael Osegge, Boafo's Managing Director, noted that Boafo's loans and saving facilities are tailor-made for clients. Although the first loans -- ranging in value between US$2,000-$3,000 each -- were disbursed in Accra, Boafo will soon expand operations to the cities of Tema, Takoradi, Techiman and Kumasi, and HFC will have branches dedicated solely to this credit initiative.

CHF International's Senior Vice President Judith A. Hermanson, PhD, was also in attendance at the launch. She expressed, "Just as Ghana has been a leader on the continent of Africa in so many ways, the launch of Boafo is a pioneering effort to extend accessible and sustainable banking services and credit to those who are not currently served by the formal banking sector."

According to HFC Bank's Managing Director, Asare Akuffo, it is very rare to find banks directly participating in microfinance inside of Ghana. At the same time, he was optimistic about Boafo, and noted that none of the bank's previous micro-business customers had defaulted on their loans.

For the past 20 years, CHF International has been a leader in designing and delivering a variety of financial services, particularly microfinance, in developing and transitional countries around the world. HFC Bank, the largest mortgage provider in the country, joins this venture following more than 10 years of successfully providing microfinance loans to Ghanaian entrepreneurs.

Founded in 1952, CHF International's mission is to be a catalyst for long- lasting positive change in low- and moderate-income communities around the world, helping families improve their economic circumstances, environment and infrastructure. CHF has worked in over 100 countries worldwide since its inception.

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