June, 25, 2010

The first micro finance company in the country to provide loans to people at an interest free rate is set to begin operations in September this year.The company, Ghana Islamic Microfinance, the first of kind in the country, is founded on the tenets of Islam and the Sharia law, which forbids the receiving and paying of interest on loans. The company has set aside US$5 million as seed-money to begin its operations.

The Chief Executive Officer of the Ghana Islamic Microfinance, Kwaku Yamoah Kyei, told B&FT in an interview yesterday that the company hopes to recoup its investment according to profit or loss sharing between the company and its clients.He said the company will operate as a project of Edikanfo Progressive Foundation, a registered local Non-Government Organisation, and will therefore not need any clearance or licence from the financial sector regulator, Bank of Ghana, to operate.