The Ghana Co-operative Pharmacists Credit Union (GCPCU) has reduced its loan interest rate from nearly 25% to 15%. This significant cut aims to improve members’ access to affordable credit and strengthen their financial well-being.
Dr. Paul Owusu Donkor, Board Chairman of the Credit Union and President of the Pharmaceutical Society of Ghana, announced this decision at the Union’s Annual General Meeting (AGM) in Accra. The rate reduction is one of three major achievements recorded by the Union during the past year. It seeks to ease the financial burden on the nearly 5,000 members, encouraging greater participation in the economy.
This move by GCPCU aligns with broader efforts in Ghana to enhance financial inclusion and support specific professional groups. Credit unions play a vital role in Ghana's financial landscape, providing accessible financial services to communities and professions often underserved by traditional banks. The reduction in lending rates can stimulate economic activity among pharmacists, fostering entrepreneurship and personal financial growth.
Dr. Donkor emphasized that while the lower rate provides relief, it also demands greater discipline in loan repayment from members. He also highlighted the successful implementation of the SEEDS Project, which supported four young entrepreneurial pharmacists in establishing their own businesses. This initiative reflects the Credit Union’s commitment to promoting entrepreneurship within the profession.
Looking ahead, the GCPCU aims to strengthen its capital base. Dr. Donkor noted that approximately 1,367 of the Union's nearly 5,000 members have not met the minimum GHS 500 shareholding required for dividend payments. He urged members to increase their share capital to support the Union's continued growth and financial resilience.
Dr. Patience Tsegah, Chief Executive Officer of Unicom Chemists, described the Credit Union as a crucial professional support system. She explained that the Union bridges the financing gap facing pharmacists by reinvesting mobilized savings into the pharmacy profession. Dr. Tsegah stressed that financial wellness is critical for professional performance and encouraged active member engagement.
Dr. Owusu Nyarko, representing the Chief Executive Officer of the Credit Union Association of Ghana (CUA), commended GCPCU for its leadership. He praised its strong liquidity position and support for members’ educational, business, and retirement needs. However, Dr. Nyarko expressed concern that the Credit Union’s capital adequacy ratio stands at 18%, which is below the recommended 20% benchmark. He urged members to increase their share capital and reduce loan defaults, stating that improved repayment would lead to continued growth and greater benefits for members.