Dormaa-Ahenkro: The Board of Directors and management of the Dormaa Area Teachers Cooperative Credit Union (DATCCU) have approved an increase in the minimum share capital for its shareholders from GHC300 to GHC500. The increase, according to the Union, was essential to meet the Bank of Ghana’s (BOG) capital adequacy ratio requirement.
According to Ghana News Agency, Mr. Frimpong Badu, the Chairman of the Board of Directors, announced that this change would ensure the union remains operational and capable of providing long-term financial services and products to its members. The adjustment aims to improve access to future funding and partnership opportunities, shielding the union from potential economic shocks.
The decision was made during the 21st Annual General Meeting (AGM) of the Union at Dormaa-Ahenkro in the Bono Region, under the theme: ‘A New Dawn of Growth: united for a stronger union’. The meeting was attended by members and shareholders from all branches, traditional authorities, staff, and past and present board members.
Mr. Badu reported a significant increase in the Union’s asset base and investment by 68.4 percent, rising from GHC57.77 million in 2023 to GHC97.32 million in 2024. Net loans to members grew by 26.5 percent, while savings increased by 68.5 percent from GGHC54.1 million to GHC91.18 million. He emphasized that despite this growth, the share capital remains inadequate relative to its asset size, urging members to increase their shareholding to strengthen the Union’s financial stability.
He also highlighted the Union’s commitment to paying higher dividends on shares, pointing out that the Union recorded its strongest financial year with a total income increase of 39.3 percent from GHC9.07 million in 2023 to GHC12.64 million. The net surplus grew by 82.5 percent, and a 12 percent dividend on shares was declared.
Mr. Badu noted a 40.6 percent increase in membership, from 4,631 in 2023 to 6,512 in 2024, attributing this growth to rising confidence in DATCCU’s stability and service delivery. He mentioned the Union’s expansion of digital banking, policy reviews, and improved audit functions, while acknowledging challenges such as delays in loan recoveries and operational costs.
Looking ahead, the Union aims to surpass GHC120 million in total assets in 2025, upgrade digital platforms, and strengthen financial literacy and cooperative culture through member education. Madam Patricia Nyaaba, the General Manager, emphasized the need for qualified members to secure loans under specific conditions, including guarantors and collateral security.