The Coastal Development Authority (CoDA) has held a stakeholder forum to engage subscribers to the CODA Credit Union, a novel initiative by the Authority to empower micro, small and medium businesses in the informal sector.
The event was attended by fishers, commercial drivers, food vendors, hawkers and traders from markets in the Greater Accra Region.
Addressing subscribers and the media, the Chief Executive Officer (CEO) of the Authority, Jerry Ahmed Shaib, stated that the CODA Credit Union has been established as an initiative under the Infrastructure for Poverty Eradication Programme (IPEP) of the Ministry for Special Development Initiatives (MSDI) as part of efforts by government to empower businesses in the informal sector to grow.
He further indicated that subscribers will play a dual role of ownership and membership of the Union to ensure sustainability.
He urged the traders to “channel the loans that they will receive into their businesses and not divert it for any other purpose to enable them repay on time for others to receive same support”.
President of the Makola Traders Association Christiana Laryea, on behalf of the subscribers, thanked the government and the Authority for their thoughtfulness and empathy for petty traders and other informal sector businesses especially in the wake of the outbreak of Covid-19 and its impact on their trades.
She described the establishment of the Credit Union as timely.
CODA Credit Union
CODA Credit Union is designed as a member-owned association that mobilises deposits of members and lends to members at negligible interest with flexible repayment terms.
To qualify for support, a subscriber must be a member of a union or association with a minimum of ten members.
As members, subscribers will receive loans while as owners they will contribute to fund the initiative. A Union Board will be composed from among the membership to run the day to day affairs of the credit union.
CODA, as an entity, will provide administrative direction and financial support to the Union.
Amounts approved will vary based on a subscriber’s trade, savings habit and demonstrated capacity to repay as assessed by the Union Board. Management of the Union will also be decentralized for managerial efficiency.
This new initiative is expected to serve as a vehicle for CODA to support and empower informal businesses within the Coastal Development Zone through IPEP as directed by President Nana Addo Dankwa Akufo-Addo .