Adehyeman launches a warehouse receipt program with 4 other savings and loans companies
Adehyeman Savings and Loans Limited (“ASL”) the leading regulated Financial Institution in the Ghanaian Savings and Loans category in the market. The business has the legal and regulatory mandate to receive deposits and offer loans to businesses, groups and individuals. The business is headquartered in Accra with 9 branches and 35 micro-lending offices in Greater Accra, Eastern, Ashanti, and Central Regions of Ghana. The branches offer comprehensive financial services to individuals and micro and small enterprises while the micro-lending offices focus on group lending.
The International Finance Corporation (IFC) Ghana Warehouse Receipt System (WRS) project in collaboration with the Ghana Commodity Exchange (GCX) launched the warehouse receipt financing product with Savings and Loans companies.
Warehouse receipt financing is a lending technique that allows farmers, producers, and traders of agricultural commodities to access bank loans by pledging their warehouse receipts issued against commodities deposited in warehouses.
Adehyeman together with the other stakeholders operating within the WRS project are also seeking to create opportunities for smallholder farmers to access credit for their farming activities.
Receipt issued by a warehouse operator serves as evidence that specified commodities with state quantity and quality have been deposited at a particular location by a named depositor, whilst the warehouse operator holds the stored commodity in a certified warehouse approved by the GCX.
The WRS Project is being implemented in nine regions of the country with financial support from the Switzerland’s State Secretariat for Economic Affairs.
Verdant Capital is a financial advisor for Adehyeman in its capital raising efforts.
Sources: Company, Ghana News Agency, Modern Ghana