Background
- The Ministry of Finance (MoF) has received financing from the World Bank toward the cost of the Ghana Financial Sector Development Project, and it intends to apply part of the proceeds for consulting services. The project objective is to promote financial sector soundness and access to financial services by individuals. This objective will be achieved by upgrading the regulatory framework for Specialized Deposit-Taking Institutions (SDIs) and credit unions and building supervisory capacity; promoting market transparency and discipline; upgrading systems used by Rural and Community Banks (RCBs), Microfinance Institutions (MFIs), and credit unions; increasing access points; linking informal groups with formal financial services providers; and educating and protecting consumers of financial services.
2.The project is comprised of four components:
- improving financial sector regulatory oversight and market transparency and discipline;
- increasing the outreach of RCBs and MFIs and linking Village and Savings and Loans Associations (VSLAs) to formal financial service providers;
- bolstering financial capacity and consumer protection; and
- enhancing the capacity for financial sector policy implementation and monitoring and supporting project implementation.
3.Project implementation is mainstreamed within the institutional structure of the MoF. Therefore, the MoF, through the Financial Sector Division (FSD), has the institutional responsibility for coordinating and managing the project, including procurement of consultancies and goods and services, financial management and reporting, Monitoring and Evaluation, and providing implementation guidance to all implementing agencies (ARB Apex Bank, Bank of Ghana, Credit Union Association, GHAMFIN, National Insurance Commission, and Securities and Exchange Commission. The Director of the FSD is the Project Director and will supervise day-to-day project implementation. A Project Steering Committee (PSC) will be established to oversee the overall implementation of the project, and will include high level representatives of the implementing agencies, as well as other relevant stakeholders. The PSC will provide strategic guidance on all aspects of project implementation, with the aim to ensure the achievement of project objectives. In addition, a Project Technical Committee (PTC) will be established to facilitate project implementation and coordination. It will comprise representatives (technical focal points) from the implementing agencies.