Best practices in training financial institutions: MSME lending trainings

At GOPA AFC, we are dedicated to enhancing the capabilities of financial institutions to better serve micro, small, and medium enterprises (MSMEs). Our consultant, Binyam Tadesse, recently led an impactful training session for 35 staff members of Amansie Rural Bank. This session is part of a comprehensive series that combines both classroom and on-the-job learning, bringing our total number of trained banking professionals to over 255 across four partner financial institutions (PFIs) in Ghana.

This training is a key deliverable for our GIZ Project, “Capacity Building for Partner Banking & Microfinance Institutions” in Ghana. The trainings are designed to enhance the delivery of financial services to better meet the needs of MSMEs. We are committed to empowering banking teams with the knowledge and skills they need to drive excellence in the industry.

Key topics covered in our latest training

Our recent training in Kumasi focused on equipping financial institutions with the tools and knowledge to better serve MSMEs. Here’s a look at the key areas covered:

• MSME product development: Introducing innovative, tailored products designed specifically for the needs of MSMEs.
• MSME credit risk appraisal: Introducing a cash flow-based loan appraisal tool that combines character analysis, cash flow, and loan structuring for effective lending decisions.
• MSME sales & marketing: Building effective strategies for partnerships with MSME associations and leveraging active referrals to expand outreach.

Driving impact: tailored financial solutions for MSME growth

Our initiative is transforming MSME finance in Ghana by focusing on demand-driven financial services designed specifically to meet the unique needs of entrepreneurs. Through specialized training, we are empowering partner financial institutions to offer customer-centric products that fuel MSME growth, foster job creation, and drive sustainable business success.

Participant Feedback

Here are some of the participants' feedback on our recent trainings:

• “This training has significantly improved my ability to assess clients using cash flow-based appraisal systems, boosting both my confidence and effectiveness in my role.”
• “The use of the appraisal tool, particularly for cash flow analysis, was extremely beneficial. I would recommend offering this training on a quarterly basis.”
• “We definitely need more periodic training sessions like this to continue improving and expanding our skills.”

Progress and achievements

Our project, focused on building the capacity of partner banks and microfinance institutions to develop innovative financial products for MSMEs, is making great strides:

• Strong partnerships: We have built solid relationships with all 9 PFIs, actively supporting them with market research, competitor analysis, and the development of demand-driven products.
• Hands-on, practical support: Our team has been directly involved in product development, developing product prototypes and pilot plans, and providing onsite assistance for product testing and implementation.
• Boosting MSMEs: We have engaged with 14 MSME sector associations, helping PFIs promote their products and create valuable linkages within the sector.

Looking Ahead

This project is committed to building the capacities of nine different financial institutions, including savings and loans companies, rural and community banks, and microfinance institutions. Our priority is to relentlessly enhance MSME product development, ensuring that entrepreneurs have better access to the financing they need to thrive.

For more information, please contact oliver.schmidt [at] gopa-afc.de