Strategic responses of microfinance institutions to the Coronavirus disease (COVID-19) crisis in Ghana

Abstract

This paper examines the impacts of COVID-19 on MFI operations and the response measures taken by MFIs in Ghana. Data from interviews shows that MFIs are faced with operational difficulties as a result of the crisis: inability to disburse new loans and collect loan repayments which is leading to increase in portfolios at risk, increased operational costs, and bottlenecks with non-financial service delivery. Reduction in lending and rescheduling of outstanding loan repayments, adoption of flexible working arrangements, and use of digital technologies are key response measures taken by the MFIs although the scale of implementation differed considerably by contextual factors.