For years, the Microfinance and Small Loans Centre (MASLOC) has struggled with a troubling trend—loans disbursed but rarely recovered. With previous Chief Executive Officers (CEOs) unable to claw back funds owed to the institution, the cycle of debt accumulation has threatened the center’s sustainability.
Now, the baton has been passed to Abigail Elorm Mensah, the newly appointed CEO. As she steps into office, expectations are high, and the stakes are even higher. Can she succeed where her predecessors fell short? Will she tighten loan recovery measures while ensuring effective disbursement to support Ghana’s micro and small businesses?
Madam Mensah has laid out an ambitious agenda aimed at improving loan recovery rates, while empowering women farmers . Her strategic priorities signal a bold move towards enhancing economic opportunities for women while driving MASLOC’s growth and sustainability.
Established in 2006, the MASLOC has been serving as government’s apex body for implementing microfinance programmes aimed at reducing poverty, creating jobs, and promoting wealth creation. MASLOC provides micro and small loans to startups and small businesses, focusing on the marginalized productive poor within the Micro and Small Enterprises (MSE) sector.
Over the years, MASLOC has faced challenges, particularly concerning loan defaults. In 2010, reports indicated a default rate exceeding 90%, raising concerns about the sustainability and management of the programme.
A study focusing on the Ashaiman Municipality revealed that loans from MASLOC increased beneficiaries’ working capital by approximately 120.6% and earnings by an average of 46.9%. However, the same study revealed default rates of 20% for individual loans and 25% for group loans, indicating ongoing sustainability concerns.
Despite these challenges, MASLOC has made significant contributions to the development of MSEs. A study focusing on the Ashaiman Municipality revealed that loans from MASLOC increased beneficiaries’ working capital by approximately 120.6% and earnings by an average of 46.9%. However, the same study highlighted default rates of 20% for individual loans and 25% for group loans, indicating ongoing sustainability concerns.
Taking office on February 17, 2025, Abigail Mensah emphasized her commitment to ensuring that women farmers get optimal value for their produce, enabling them to repay loans more efficiently. Her vision is to strengthen the agricultural value chain and support women entrepreneurs, helping them maximize profits and achieve financial independence.
“Women farmers are a critical part of our economy. By supporting them to get better value for their produce, we’re not only empowering them but also ensuring sustainable loan recovery,” she stated.
A key priority for the new CEO is enhancing loan recovery rates through strategic interventions and improving MASLOC’s financial sustainability. Abigail Mensah also highlighted plans to advance the paperless system, streamlining the application and approval processes to enhance operational efficiency.
These measures are designed to modernize MASLOC’s operations, making it more accessible and efficient for small businesses and entrepreneurs across Ghana.
Under Abigail Mensah’s leadership, MASLOC’s strategic priorities include, empowering Women Farmers by providing targeted financial support to women in agriculture, ensuring they maximize profits and achieve financial independence.
Secondly, by enhancing loan recovery, implementing effective loan recovery strategies to boost MASLOC’s financial sustainability.
Another area is digital transformation; advancing the paperless system to streamline loan applications and approvals, enhancing operational efficiency.
Finally, building partnerships; by collaborating with stakeholders to create sustainable economic opportunities for small businesses and entrepreneurs.
With a clear focus on women’s economic empowerment and efficient loan recovery, Abigail Mensah is set to drive MASLOC’s growth while making a significant impact on Ghana’s economy. Her strategic vision not only aims to enhance operational efficiency but also to empower women entrepreneurs, contributing to inclusive economic development.
