The executive director of the Association of Ghana Micro Finance Institution Network, Yaw Gyamfi has warned his members that they risk losing their operating license if they fail to merge by February next year.

This follows the Bank of Ghana’s decision to raise the minimum capital requirement of Micro finance institutions to GH 2million.

The minimum capital requirement date was rescheduled to next year after several petitions from various micro finances to be given ample time for recapitalization.

But the executive director of the Ghana Micro Finance Institution Network has advised his members to be strategic and think of mergers if they are to raise the mammoth GH 2million or risk losing their operating licenses by next year.

“Work ought to be done now but if you cannot meet the minimum capital then the best option is to merge or allow a bigger institution acquire your institution and move on because as it turns out now we cannot afford to lose more institutions it will not be in the interest of the country and the owners and the clients.

“If all these things happen and we cannot expand the business beyond the 2 million people then what becomes of our financial inclusion agenda.

All these things will be affected negatively “he emphasized

Asked about the confidence of people in dealing or working with institutions in the sector he says that the response has been slow as people still habour fears of working with micro finances for fear of insolvency and closure.