Strategic responses of microfinance institutions to the Coronavirus disease (COVID-19) crisis in Ghana

ABSTRACT

This paper examines the impacts of COVID-19 on MFI operations and the response measures taken by MFIs in Ghana. Data from interviews shows that MFIs are faced with operational difficulties as a result of the crisis: inability to disburse new loans and collect loan repayments which is leading to increase in portfolios at risk, increased operational costs, and bottlenecks with non-financial service delivery. Reduction in lending and rescheduling of outstanding loan repayments, adoption of flexible working arrangements, and use of digital technologies are key response measures taken by the MFIs although the scale of implementation differed considerably by contextual factors.

KEYWORDS:

• COVID-19
• microfinance
• strategic responses
• loan repayment
• Ghana

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Thomas Yeboah

Thomas Yeboah serves as a Research Fellow with the Bureau of Integrated Rural Development, Kwame Nkrumah University of Science and Technology. Thomas’ research focuses on migration and development, children/young people and work, gender, rural livelihoods, and development interventions

Ernestina Fredua Antoh

Ernestina Fredua Antoh is an Associate Professor and a Senior Research Fellow with the Bureau of Integrated Rural Development, Kwame Nkrumah University of Science and Technology. She is a sociologist with research interest on microfinance, women empowerment, gender, and rural livelihoods.

Emmanuel Kumi

Emmanuel Kumi is a Research Fellow at the Centre for Social Policy Studies, University of Ghana. His work focuses on development finance, political economy, NGOs, sustainability, African philanthropy, civil society advocacy, and civic space.