Daily WADS (DW), an investment company based in Ghana has acquired 80percent stake in Sunyani based microfinance company, Planters Capital, to become majority shareholders.
The move, forms part of DW’s ambitious plan to make an imprint in the financial space in Ghana, with the takeover bid.
It now becomes Daily WADS Microfinance with existing branches in Sunyani, Techiman and Accra.
However, in view of the new merger, executives of DW have set their sights on establishing new branches at Kasoa, Madina, Ashaiman, Tema as well as four more in the Accra metropolis by end of November.
At a ceremony to announce the takeover bid, executives of the new company also reaffirmed plans to increase the profile of the microfinance company and also appealed to the investing public to “do business” with them.
Managing Director of DW, Asafo Adjei, indicated that in spite of their new entry into the market, they come with experience, credible people who are going to steer and support small businesses.
“Our aim is to target the rural poor, middle class and business partners, especially those importing from China” he said at the ceremony to announce the partnership between Planters Capital and DW in Accra.
A recent study of the financial sector in Ghana revealed that commercial banks are able to serve about 5percent of households, meaning that 95percent are not being catered for, Asafo Adjei pointed out.
According to him, one of the key challenge confronting the microfinance sub sector is lack of funding, and most recently the issue of trust in the system.
Recent happenings in the microfinance sector, such as activities of DKM, God is Love and others and the rest collapse of commercial banks have raised concerns about the abilities of these institutions to help in poverty reduction and financial inclusiveness agenda of the government.
He also assured prospective investors and customers that DW is seeking to collaborate with Planters Capital who are one of the few microfinance institutions operating in Ghana.
“We seek to partner with Planters Capital to offer innovative products to our clients and to promote financial inclusiveness agenda of the government” he added.
A representative from the Ministry of Special Development Initiatives, Dr.Kofi Asamoah Baah who graced the occasion stated that government is “trying to sanitise the banking sector given what has happened to the indigenous banks.
He also commended the partnership between DW and Planters Capital, insisting that it “is a good product and we are all here to support it… We are very excited about what DW is doing, the Ministry of Finance and Special Development Initiatives have absolute confidence in what you are doing and we hope you will continue to be part in constructing the future”.
Dr. Baah also urged executives of DW to migrate to other sectors of the economy beyond microfinance and stressed that Ghana should learn from China, who moved 500 people from poverty within thirty years.