69% Of Susu collectors operate illegally: BUSAC Study

Out of 1,500 susu collectors operating in the country, only 472 of them, representing 31 per cent, are licensed by the Bank of Ghana (BoG).The rest, representing about 69 per cent, operate without licence from the regulator.

These are some of findings of a study conducted by the Ghana Cooperative Susu Collectors Association (GCSCA) with funding from the Business Sector Advocacy Challenge Fund (BUSAC), with the aim to test compliance of operators in the sector.

The research was dubbed: ‘Broadening and Intensifying the Regulation and Supervision Mandate and Role of Umbrella Associations.

Following a review of the Non-Bank Financial Institution Act, which included susu operation as a Tier 4 activity, GCSCA secured supervisory mandate from the central bank. The Tier 4 comprises activities undertaken by individual susu collectors, susu enterprises, individual money lenders and money lending enterprises.

The Act states that all Tier 4 operators shall belong to an umbrella association such as GCSCA. Subsequently the central bank directed GCSCA to assume partial regulatory function of operators in the country under the supervision of BoG.



According to the findings, a considerable number of susu collectors and also GCSCA members are not adequately aware of the self-regulatory mandate and regulation functions of GCSCA.

Similarly, a large number of collectors were not aware or did not have sufficient knowledge and understanding of the GCSCA’s delegated mandate from the central bank.

“A significant number of collectors do not comply with the documentation and reporting standards prescribed under the self-regulatory scheme,” it said. Another key concern raised in the research was that the public have difficulties in readily identifying the susu collectors regulated under the self-regulation scheme.

This also suggests the need to improve the means of identification to ensure easy recognition of operators which were regulated under the self-regulatory scheme.

The research also indicates that the public prefer dealing with licensed operators, but they lack the understanding of the regulatory requirement and demands on “he collectors.

“The public also affirmed recognition and support to the establishment and implementation of compliance enforcement and sanction scheme,” it stated.


Support for sanction scheme:

Speaking on the findings of the research, the General Secretary of the association, Mr Obed Yaw Asamany, in an interview with the GRAPHIC BUSINESS said the susu collectors appreciate and support the establishment of appropriate compliance enforcement and sanction scheme among the operators.

“There is the need for intensive and extensive sensitisation to improve the general public awareness and appreciation of the GCSCA and the self-regulatory functions, as well as recognition of the central bank’s mandate,” he said.

“Invariably, it would be of crucial importance to improve the features of the identification of operators,” he added. He said the association had begun sensitisation programme to educate the public on the need to understand the features of the regulation scheme and requirement. – GB.