The Ghana National Association of Teachers (GNAT), has revived plans to establish and operate a universal bank by 2023, as it seeks to invest in profitable ventures to maximise returns on the Teachers Fund (TF).
GNAT has since created a sinking fund from the TF to raise the minimum capital requirement set by the central bank among other provisions in the licensing regime.
The total value of the TF’s asset has grown in excess of GH¢2 billion, Chief Executive of the Fund Foster Buabeng told GBC News at a teacher investment forum in Accra.
“We are seeking to further diversify our investment portfolio and commercial banking is a key target,” he said.
Pending regulatory approval, the proposed teachers’ bank will become the first universal bank set up by a worker union in Ghana’s history.
The union’s plan to establish a bank first emerged in 2013, but discussions stalled over issues known to GNAT and its consultant only.
The fund receives an average monthly contribution of GH¢50 from its 220,000 members.
Diversifying Investment Portfolio
Managers of the Teachers Fund are exploring ways to maximise returns and enhance teachers’ welfare, as part of its 90th anniversary celebrations.
It has currently invested in airport ground handling firm Aviance, Unique Insurance and Credit Mall which advances loans to members of the Association.
“We are restructuring Credit Mall to make it more liquid to support teachers with loans,” General Secretary of GNAT, Thomas Musah, told GBC News.
Latest by October, TF will acquire a life insurance company to guarantee financial protection to teachers.
By: Sani Abdul-Rahman.