As Ghana’s cooperative credit unions face mounting challenges, Prof. John Gatsi, Dean of the University of Cape Coast Business School, has issued a warning about their future viability. He points to weak governance structures, delinquent loans among directors, and inadequate oversight as critical concerns. In a speech marking the 50th anniversary of the Oguaa Teachers Cooperative Credit Union, Prof. Gatsi emphasized the urgent need for reforms, including the removal of directors with unpaid loans and stricter oversight.

Prof. Gatsi also stressed the necessity of modernizing credit unions to meet 21st-century demands, noting that financial literacy must improve, and membership should grow to sustain these institutions. As income inequality rises, he underscored the importance of adopting technological solutions, tightening recruitment processes, and ensuring operational efficiency to protect members’ savings.

According to Gatsi, embracing sound management practices and prioritizing sustainability metrics will be key to addressing financial exclusion. He praised the Oguaa Teachers Cooperative Credit Union for its contributions to financial inclusion but warned that without reinvestment in governance and tighter controls, the sector’s role in bridging economic disparities could diminish.

Referencing a Bank of Ghana report on banking sector fraud, Prof. Gatsi highlighted the need for robust recruitment and training practices, particularly emphasizing integrity and commitment alongside technical skills. He further called on credit unions to employ cost-effective strategies that bolster financial stability and improve credit access for members.