Adwoa Boatemaa, a beneficiary of our Social Investment Fund, and how she has grown her business. Photo:Eclipse Microfinance

Eclipse Microfinance Limited (EML) was set up with a mandate from the Central Bank of Ghana to give credit to micro and small-scale businesses and individuals as well as offer investment opportunities to the public at large. Four years on, the company has touched many more lives than businesses through its social intervention strategy.

The case of Kekeli Klagbon

Kekeli Klagbon, a member of a family of five, lived in the southern part of Ghana. Being a somewhat precocious child, he had always admired doctors with their white lab coats and stethoscopes hanging around their necks. His one wish in life was to be a doctor so as to be able to look after the scores of deprived people in his community, who lived very decent and hardworking lives. 

His goal was almost permanently derailed when his father died during his last year in junior high school and his mother became unemployed as a result of a massive retrenchment policy at her workplace. Faced with an almost hopeless situation, Kekeli had no one to turn to and clung to his very passionate desire to do something significant with his life. Prior to his death, his father had put away some savings into EML’s Educational Investment Plan. 

Kekeli’s mother walked into the company’s office with the intention of withdrawing whatever funds there were in her late husband’s account and use it for subsistence for her needy family. Her small hope for a few days of happiness was jolted when she was informed by the company that, in order to access her husband’s trust account, Letters of Administration were required by law and policy. With no hope of receiving help to access funds or procure Letters of Administration to administer the late husband’s estate, she cried and attracted the attention of the bank’s senior management members, who were meeting for a strategic review of their budget figures. The Head of Marketing was dispatched to intervene. Management members were immediately notified about the woman’s situation and a decision was arrived at: The woman was given a reasonable amount of money. This would enable her to take care of her children. Her late husband’s contribution into the Education Investment Plan was converted into a scholarship for Kekeli to complete junior high school and continue with his dreams. 

Kekeli is now a senior in high school studying sciences, making excellent grades, and keeping his dream of becoming a community doctor alive. As his mother puts it: “Fate and nature gave EML the opportunity to bring light and hope to myself and my son Kekeli.”

The case of Simeone Bansah and his wife

Simeone Bansah and his wife, Love Bansah, are micro-scale traders dealing in the distribution of everyday provisions. Their flagship product is purified water. Simeone and Love decided to expand their product line to meet the demands of their growing customer base. They had gone to several banks for money and been given the same answer: “You are a start-up and do not have the requisite collateral.” When they had almost given up and consigned themselves to their “micro” business with no help from any quarter, they happened to meet an EML mobile banker who was visiting their neighborhood. A brief interaction revealed that EML was in a position to make their expansion dream come true.

Simeone and Love came to EML with their proposal, but they lacked the necessary collateralization for their loan. (EML policy states that loan amounts must be secured with collateral worth at least 110 percent of the loan amount). Their collateral could only secure 25 percent of their facility. Simeone turned to go but Love requested to speak with the CEO. This proved decisive. On learning about the case and being moved by their will and zeal to move on in spite of the odds, their loan was approved. They both left EML in tears that day – tears of relief.

It has been 2.5 years since then, and Simeone and Love have gone on to become the major distributors for four major brands of purified water within their Adentan locality. They recently received awards from two of the companies for outstanding service. Simeone and Love have employed four extra hands to help in their shop, and the demand for their products is increasing daily. They have also set up six people in the same business lines to help them grow.

Social intervention strategies

EML, in collaboration with the Social Investment Fund, has disbursed loans to more than 1,500 clients with a view toward reducing urban poverty levels. These loans were given at a concessionary rate of 19 percent per annum (the going industry rate is 36 percent per annum). This initiative has been most beneficial to clients, and management intends to provide low-cost funds in the short term so that the initiative can be extended.

Corporate social responsibility

In line with the UN Global Compact Principles and the Sustainable Development Goals, EML has adopted four needy but brilliant girls in the Adentan West Community and is sponsoring their elementary education for the 2016/2017 academic year. All expenses regarding their tuition and daily costs have been provided by the company.

EML has also donated some trophies and cash prizes to the La Nkwantanang Municipal Education office. The West Adentan cluster of schools will compete for these, in line with the UN policy of using sports to foster unity among schools.

EML is committed to ensuring that the underprivileged and very poor but hardworking Ghanaians in the municipalities are able to participate financially in their communities.