Adwoamanu’s Weblog

Just another weblog

Coming soon: A Teachers’ Commercial Bank

By James Harry Obeng


REALISING the difficulties that their members face at their retirement and in times of crises, the Ghana National Association Teachers (GNAT) has since 1998, instituted a monthly “put-aside” mechanism to marshall funds against the unknown and unexpected. The chronicles the genesis of the GNAT Teachers Fund.


Ten years down the lane, the fund has not only made good its objectives, but is also set to see to the birth of yet another milestone; the establishment of a commercial bank, to be cited in Accra.


“This forms part of our five-year Strategic Plan”, declared  Mr Samuel Ofori-Adjei, the Board Chairman of the fund, in an interview with The Spectator, adding “the five-year period will witness the metamorphosis of our current non-bank facility, the TF Financial Service, into the commercial bank”.


The five-year strategic plan, he noted, would enable the fund to, whilst gathering enough experience in running the bank, accumulate resources to meet the initial minimum requirement of the Bank of Ghana, currently pegged at GH¢60 million.


“The TF financial services is the precursor to the bank,” which will serve the public, but with a special focus on the welfare of teachers.


Aside the bank, the fund is expected to commission in December, this year, two major projects constructed at a total cost of GH¢11 million.  The first project is an eight-storey office complex located at the Independence Avenue, next to the Institute of Economic Affairs (IEA) in Accra. The complex is believed to house the soon-to-come commercial bank.


The second project to be commissioned this December is a 1,000-bed hostel facility,  consisting of four blocks and a caretaker residence, at the University of Ghana Campus, Legon”.


To sustain and multiply itself the Teachers Fund, instituted by the Ghana National Association of Teachers (GNAT) has been re-invested into very high yielding portfolios. So far the Fund operates nine-major areas of portfolio, namely, treasury bills, listed equities, bond/bills /notes, private equity placements, loans and facilities and real estate investments. The rest are the credit mall limited, TF Properties Limited and the TF Financial Services, the latter from which is to emerge the new bank.


Disclosing this to The Spectator, Mr Samuel Ofosu-Adjei, Chairman of the Fund’s  Board  said the current membership strength of 165,000 teachers nationwide could access loans from the fund towards the building of houses (habitat), purchasing cars and for personal use, especially in times of emergency and crisis.


The vehicles loan scheme, he said, was a intervention to assist teachers to acquire vehicles and motorbikes at reduced prices, following a partnership struck between the fund and some automobile garages in the country   namely – Nissan, Hyundai, Tata, Toyota. Under the scheme, estimated to benefit about 150 members on yearly basis, GNAT arranges for the supply of new and used imported vehicles to interested teachers. The repayment of which is facilitated by the fund through the vehicle loan facility. over a period of  between three and seven years through monthly payroll deductions, not  exceeding exceed 50 per cent of ones net salary.


The fund has so far disbursed a total GH¢224,597.37 to 36 beneficiaries in purchasing cars.


On habitat as housing loans, the fund has disbursed GH¢176,500, spanning 2005 and August 2008, to 62 teachers nationwide; four in 2005, 15 in 2006, 17 in 2007 and 26 in 2008. The fund, in a breakdown, has recorded a total of GH¢81,700 habitat/house disbursements in 2008, GH¢46,400 in 2007, GH¢43,000 in 2006 and GH¢5,400 in 2005.


Similarly, about hundred thousand teachers nationwide have benefited from personal loan talling GH¢34,423, 359 in personal loans between 1998 and May, 2008.  According to the 2007 Annual Report of the fund, which also pegs the overall total of disbursements under the fund since its inception at GH¢35,190,153.74. Investment loans disbursed between 2001 and May 2008 also totals GH¢156,700.


Mr Ofori-Adjei, however, urged member, especially those outside of its optional contributions category, to make frantic efforts to join in order to enjoy the full benefits of the fund, especially in times of need.






September 18, 2008 - Posted by | News

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: