The shareholders also supported the bank’s transitioning into a community bank as part of efforts to strengthen its capital base and position it for expanded operations under the new Bank of Ghana (BoG) Microfinance Revised Framework.  

Dr Alex Asmah, Chief Executive Officer, Amenfiman Rural Bank PLC, explained that the BoG’s directive would consolidate the entire microfinance sector.  

Speaking at the first Extraordinary General Meeting of shareholders, he noted that the rights issue would allow existing shareholders to purchase additional shares at a discounted rate, enabling them to consolidate their holdings, while injecting fresh capital into the business.  

He indicated that existing shareholders could buy up to half of their existing shares, whereas new shareholders get theirs at the prevailing rate yet to be determined by management and Board of Directors.  

Dr Asmah explained that raising the capital comes at a critical time as the Bank transitioned into a community bank effective March 31, a move he described as an opportunity to do more for customers and local economies.  

The enhanced mandate would enable the Bank to scale up financing for Micro, Small and Medium Enterprises (MSMEs), invest further in technology and improve customer service support systems, he described. 

According to the CEO, stronger capitalization would also reinforce the Bank’s risk management platform, enabling it to prudently extend higher credit volumes under controlled conditions.  

Professor Lucas Damoah, Board Chairman of the Bank, detailing the microfinance reforms, said certain key decisions, including a change of name must be taken.  

“The regulator (BoG) proposes to move all rural banks into community banks, and that requires shareholder approval,” he outlined.  

He said shareholders were therefore asked to authorize the board to implement name change and to proceed with the modalities for the proposed rights issue. 

Prof. Damoah mentioned that increasing the Bank’s capital adequacy was central to its long-term sustainability, adding that, the Bank would take advantage of this opportunity to strengthen its capital base ahead of the new framework from the Bank of Ghana.