The Chensong Women’s Group in Kintampo, in the Bono East Region of Ghana, established in 2020, comprises 26 determined women who set out to overcome financial challenges in their shea butter businesses. Despite the challenges in managing a group-based loan, the Chensong Women’s Group remained unwavering.
In January 2024, the Chensong Women’s Group, through Tradeline Consult’s intervention, was introduced to Kintampo Rural Bank PLC. Tradeline supported the women in approaching the bank with a strong financial roadmap to secure a loan. This was after a thorough evaluation of their business potential and financial needs which was conducted by Tradeline. With this, Kintampo Rural Bank PLC approved a loan of GHS 25,000 at a 34% annual interest rate.
The group, led by Emmanuel Dabuokuu, agreed to repay the loan over a six-month period, with monthly instalment of GHS 4,875, which included both the principal and the interest. Determined to succeed, the group established a strict repayment schedule with the guidance of Tradeline, ensuring no delays in their monthly payments.
Their financial discipline paid off, and by the end of the six months, the Chensong Women’s Group had not only fully repaid the loan but had also expanded their operations significantly. By repaying part of the loan ahead of time, they reduced the overall interest burden and were able to increase their production capacity from 1 ton to 1.6 tons of shea butter each month.
With increased production capacity, they are now able to meet market demand more readily, selling their products weekly and generating higher profits. This boost in their operations helped them not only to recover from their financial struggles but also to position thems as key players in the shea butter industry within the Kintampo community.
Kintampo Rural Bank PLC was impressed with the group’s professionalism and commitment, hailing them as a model for other community-based organizations. Their partnership with the bank remains strong, as they look forward to even greater achievements in the future.
