Boafo Microfinance Services Ltd.

Boafo clientBoafo Microfinance Services Ltd.

In 2007, CHF International and HFC Bank Limited (Ghana) established Boafo Microfinance Services Ltd., a microfinance service company which provides housing and enterprise microfinance loans to households living and working in the informal settlements of Accra, Tema, and Kumasi. Since its inception, Boafo has grown to include a loan portfolio worth nearly $7 million and a client base of more than 3,000 active borrowers, as well as a savings program with more than $13 million in 2016.

Boafo, which means "helper" in the native Twi language, combines Ghana's largest mortgage lender with CHF to provide a “helping hand” to low- and moderate-income Ghanaians in their pursuit of business, shelter and educational opportunities. Boafo is providing loans thanks to funding from the Global Development Alliance (GDA) of the U.S. Agency for International Development (USAID) and the United Nations Slum Upgrading Facility (SUF), in addition to HFC Bank.

It is estimated that in Ghana, at least 1.9 million urban poor face limited access to credit to improve or build their homes or expand or start-up new enterprises. Boafo cannot provide mortgages, but instead uses its unique role to support small businesses and households through:
• Loans to improve or expand homes in informal settlements
• Loans to expand businesses to improve household incomes
• Lower collateral requirements for loans to informal sector entrepreneurs than those required by other lenders
• Access to savings services through the HFC Bank
• Courses for clients on managing credit and home improvement projects