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Friday, February 23, 2024

NACCUG signs MoU with partners to introduce business loans in credit unions

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By Olimatou Coker

The National Association of Cooperative Credit Union Gambia (NACCUG) has recently signed a memorandum of understanding with German Sparkassenstiftung for International Cooperation (DSIK), the Gambia Police Force Cooperative Credit Union and Medical and Health Services Cooperative Credit Union to introduce credit schemes for micro, small and medium scale entrepreneurs within the credit union movement in The Gambia.

The signing ceremony was held at the NACCUG office in Kanifing.

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The MSME credit schemes would be introduced in the two credit unions with the technical support of NACCUG’s German partner, DSIK.

For the pilot phase of the project, the scheme will focus on entrepreneurs within the Gambia Police Force Cooperative Credit Union and Medical and Health Services Cooperative Credit Union.

A revolving fund of 2.7 million dalasis will be set up for the two credit unions by NACCUG while DSIK would also support in developing the loan policy and process and further train the loan officers to successfully implement the scheme.

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DSIK will also support the loan officers from the GPFCCU and MHSCCU with technical equipment to kick-start the project. 

Foday Sanyang, general manager of NACCUG, said DSIK has worked with NACCUG and the other credit unions indirectly but late last year the partnership became more directly.

“This loan scheme will take effect next month April and the plan is it will go all the way to next years June 30th, 2023, and the idea here is to make sure that they enhance and provide them with some kind of resources so that they can at least improve on their businesses,” he said.

Sanyang thanked DSIK for providing this support to the entire credit union movement.

“I have no doubt that the commitment from both medical and police is asured and I am sure they will deliver to expectation”.

Gabriele Vandem Bussche, DSIK country representative, said they will like to support the credit unions to move into a new dimension.

“The aim is not only to look at the collateral but to actually look at the venture. We have had two training selections with our colleagues from the credit unions to train the loan officer and the risk manager to familarise him with skills that are new to the credit unions,” she added.

Pa Singhateh, general manager of the police credit union, expressed delight in benefitting from the loan, while thanking NACCUG and DSIK for for coming with the project.

“I know you people have lot of trust and confidence in our these two credit unions that are going to sign this MoU. That’s why you chose us to implement this on your behalf. I know DSIK has been doing a lot in the background”.

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