WOES OF LOAN SEEKERS IN TAMALE (PAGE 29)

THE management of banks and other financial institutions operating in the Tamale metropolis have expressed concern over the inability of most prospective loan seekers to provide the necessary documentation, including lease on their landed property as a guarantee for offering them loans.
They observed that as financial institutions, their dealings with businessmen and customers in general required that they demanded collaterals which included immovable property such as buildings before agreeing to offer loans.
This situation has been attributed to the current chieftaincy impasse in Dagbon that has led to the long delay in enskinning a substantive Ya-Na for the Kingdom.
As the Overlord of the entire Dagbon area, the Ya-Na is the signatory to all lease documents that gives authenticity to such landed property before the final approval by the government.
However, since the Dagbon chieftaincy crisis in March 2002, which claimed the life of the king, all lease documents have not been signed, therefore, making it difficult for newly acquired landed property owners to access loans from the banks as there are no authenticated documents on their buildings to use as security.
The concerns were raised at the first consultative meeting between the Tamale Metropolitan Assembly (TAMA) and management of banks operating in the metropolis.
Among other issues discussed were how to take advantage of the presence of the banks in the metropolis to create an enabling climate for the promotion of business in the area.
Responding to the concerns raised by the banks, the TAMA Co-ordinating Director, Alhaji Adam Mohammed Baba, said the issue over the appointment and subsequent enskinment of a Ya-Na was a traditional matter that was much bigger than the assembly.
He, however, indicated the preparedness of the assembly to hold consultations with the Northern Regional House of Chiefs and the Lands Commission for advice and an interim arrangement for the way forward.
‘‘The banks can also find other alternative means that can involve entering into legal agreements with prospective loan seekers for your mutual benefit,’’ Alhaji Baba further suggested.
There has been an influx of banks into the metropolis over a couple of years now. The new banks include the Amalgamated, Home Finance Company and the Intercontinental banks.
At the moment, the Zenith and Stanbic banks are busily constructing their offices in the central business district while Ecobank and UBA are also said to be in the process of acquiring land to put up their structures.
These are aside the traditional banks, such as Stanchart, Barclays, SG-SSB, First Ghana Building Society and the Bonzali Rural bank which have been operating in the metropolis over the years.
The rest are the National Investment, Ghana Commercial and Agricultural Development banks.
In an earlier address, the Mayor of Tamale, Mr Mohammed Amin Adam Anta, partly attributed this development to the investment forum held in Accra and Tamale in 2005 and 2006 respectively.
‘‘It is the wish of the assembly that the increase in the number of banks would not only bring about healthy competition but also translate into increased volume of trade and credit facilities to the business community,’’ he said.
The mayor indicated that there were a lot of business opportunities in Tamale and announced that work would soon commence on a livestock market in Tamale to serve as a trading point between Tamale and Fada N’ Gourma in Burkina Faso.
It is being funded by the Canadian District Wide Assistance Project (DWAP).
‘‘We have also received proposals from a Chinese Textile manufacturing company, Jingwei Textile Machinery, expressing interest in providing loans to a Ghanaian business woman resident in the UK who intends to establish a textile company in the metropolis,’’ he added.
Mr Anta gave the assurance that the assembly would provide the needed security for all business establishments in the area.