Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status update — August 15, 2017

Since pausing our partnership with Grameen Ghana in January 2017, their liquidity situation has continued to worsen, leading to a complete suspension of their lending activity. This situation has also led to closure of some of their branches, along with downsizing of their staff leaving only a small group to focus on loan recoveries.

Over this period, Grameen Ghana has also engaged an external auditor to carry out a forensic audit of their credit program after indications that internal fraud may have been a contributing factor for the high delinquency that caused the liquidity challenges. Preliminary report they shared with Kiva confirmed that indeed some of their staff were involved in fraudulent activities and they took immediate action to suspend and terminate all the culpable staff. Grameen Ghana hasn’t yet shared with us the final forensic audit report for our determination of the effect of the fraud on the outstanding Kiva debt of $56,875. We continue to work with the partner to determine how much of the current debt is reasonably recoverable and the time frame by which such payments would be remitted. We’ll post an update as soon as these details are determined.

Status update — January 9, 2017

The situation has continued to deteriorate following our last update about liquidity challenges and an agreed upon payment plan with Grameen Ghana. Since August 2016, Grameen Ghana hasn’t honored the monthly payment plan and their total debt now stands at $56,875. Based on our further assessment of the continued challenges facing the organization, we’ve decided to pause this partnership and will continue to work to try and recover the amount due to Kiva lenders. As more information becomes available on the progress of our recovery efforts, we’ll post updates to this page.

Status update — September 13, 2016

Grameen Ghana has reported a significant increase in delinquency for Kiva loans in the past few months. This has been the result of liquidity constraints, as well as economic challenges facing the Ghanaian market in general. Based on Kiva's assessment of the situation, we have mutually agreed to suspend fundraising for new loans on Kiva until the organization's situation improves. We have also agreed on a monthly repayment plan of $5,000 per month to cover the overdue payments to Kiva lenders. We will continue to monitor the situation and provide updates if the situation changes.


Partner description:

Grameen Ghana is a microfinance institution that aims to alleviate poverty in rural Northern Ghana by empowering underserved communities through financial services and educational training. The organization currently serves 13 districts that are home to some of the poorest people, providing the country’s most vulnerable groups with microcredit, food security and education.

Since its creation in 2003, Grameen Ghana has shown extraordinary commitment to connecting Ghana’s financially excluded communities with access to capital.

Today, Grameen Ghana serves over 11,000 clients -- 98% of whom are women -- and provides them with four financial products:
(1) Basic or income generating loans.
(2) Shea loans, for shea nut pickers and processors.
(3) Agricultural loans that provide farmers with funding for activities including cultivation, inputs, and harvesting.
(4) Energy or solar loans, to help clients purchase solar lighting devices in conjunction with Impact Energies.

In addition to its microfinance services, Grameen Ghana promotes entrepreneurship and financial empowerment surrounding communities through various credit and financial literacy trainings, savings programs and educational courses

A unique lending approach:

As well as supporting Grameen Ghana’s expansion into other underserved communities, Kiva lenders’ funds will help the organization to grow and develop two of its highly catalytic loan products: the Agriculture/Shea loans and the solar loans.

Given that farming is the main source of income for most borrowers, Grameen Ghana will use Kiva funding to increase the number of its high-demand Agribusiness and Shea loans. Together these products currently account for slightly more than half of the organization’s outstanding loans.

Kiva funding will also allow Grameen Ghana to expand its solar loan outreach and develop its current partnership with  Impact Energies to offer a wider range of solar products to more clients. Due to funding constraints, loans had  previously been limited to existing clients and low-value lighting products.

 

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Feb 28, 2014 Oct 12, 2005
Total Loans $516,100 $997,943,900
Amount of raised Inactive loans $0 $438,300
Number of raised Inactive loans 0 409
Amount of Paying Back Loans $87,550 $148,087,550
Number of Paying Back Loans 29 186,589
Amount of Ended Loans $428,550 $849,418,050
Number of Ended Loans 155 1,070,304
Delinquency Rate 100.00% 8.53%
Amount in Arrears $57,149 $8,137,335
Outstanding Portfolio $56,874 $95,421,997
Number of Loans Delinquent 29 20,278
Default Rate 0.00% 1.41%
Amount of Ended Loans Defaulted $0 $11,937,620
Number of Ended Loans Defaulted 0 34,361
Currency Exchange Loss Rate 1.90% 0.45%
Amount of Currency Exchange Loss $9,809 $4,521,512
Refund Rate 0.00% 0.60%
Amount of Refunded Loans $0 $5,985,075
Number of Refunded Loans 0 6,003

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 99.46% 75.52%
Average Loan Size $118 $398
Average Individual Loan Size $1,500 $627
Average Group Loan Size $2,812 $1,757
Average number of borrowers per group 23.8 7.7
Average GDP per capita (PPP) in local country $3,500 $5,871
Average Loan Size / GDP per capita (PPP) 3.39% 6.78%
Average Time to Fund a Loan 4.83 days 6.92 days
Average Dollars Raised Per Day Per Loan $24.52 $57.52
  Average Loan Term 6.15 months 11.14 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 91 521,350
  Journaling Rate 49.40% 41.20%
  Average Number of Comments Per Journal 0.00 0.05
  Average Number of Recommendations Per Journal 0.00 1.14

Borrowing Cost Comparison (based on 2014 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 34% PY 53.00% PY 26.37% PY
  Profitability (return on assets) N/A 0.3% -1.15%
  Average Loan Size (% of per capita income) N/A 13.00% 15.88%

Country Fast Facts

Field Partner Staff

Anas Abukari
Mohammed Al-Hassan Adams
Abdul-Gafaru Alhassan
Mohammed Alhassan
Muaweya Mohammed
Mugmin Musah