Sinapi Aba and Opportunity International: A Model of Social Impact and Sustainability

Sinapi Aba Trust and Opportunity International Savings and Loans (OISL), both part of the Opportunity International Global Network, are leading the way in social impact and sustainability in Ghana’s financial sector, Kofi Ahovi takes a look at how these two companies are making impacts in improving lives in Ghana.

With a shared mission to provide financial inclusion and economic empowerment to marginalized communities, the two institutions have made a significant impact on the lives of over 1.5 million clients, with 84 branches and over 2,500 employees.

According to CEO of Sinapi Aba, Tony Fosu, the company’s focus on social impact and sustainability has been key to its success.

We have built trust with our clients, and our commitment to reinvesting profits back into the company has contributed to our sustainability,” he said.

In a move to prioritize sustainability and customer satisfaction, both Sinapi Aba and Opportunity International have adopted a new approach focused on increasing impact and satisfying clients through engagement and loyalty. With the believe that this strategy will lead to profitability in the long run.

The financial institutions have recognized the importance of building strong relationships with their clients and creating a positive impact on the community. By engaging with customers and fostering loyalty, the institutions aim to create a loyal customer base that will drive long-term growth and profitability.

“Sustainability and customer satisfaction are at the heart of our business model,” said Kwame Owusu-Boateng OISL’s CEO. “We believe that by prioritizing these aspects, we will not only create a positive impact on the community but also drive long-term profitability.”

The institutions’ new approach includes initiatives such as customer engagement programmes, community development projects, and sustainable banking practices. By implementing these initiatives, the institutions aim to create a positive impact on the environment and society while also driving business growth.

Industry experts have praised the institution’s approach, noting that prioritizing sustainability and customer satisfaction is a key driver of long-term profitability. “By focusing on these aspects, the institution is building a strong foundation for future growth and success,” said an industry analyst.

Sinapi Aba Trust, founded in 1994 by Bishop Davis Freeman and his wife Rev. Elizabeth Freeman, has been a pioneer in providing financial services to disadvantaged individuals and communities. Opportunity International Savings and Loans (OISL), established 10 years later, has continued this mission, with a focus on using technology to reach more clients.

The company’s use of AI to create tools for farmers and its commitment to providing financial support and wellbeing to households has made a significant impact on the lives of many Ghanaians.

With plans to expand to new regions and double its client base in the next few years, OISL is poised to continue making a significant social impact in Ghana.

As Owusu-Boateng noted, “The future looks brighter than before, and we are committed to Ghana. We will continue to find solutions and build a great foundation to undertake more social impact activities and touch more lives.”

However, the journey to this point has not been without its challenges. It has not always been rosy for Sinapi Aba and its sister company, OISL. The two companies have faced their fair share of difficulties in running their businesses over the last two to three decades.

“We have made losses, learned our lessons, weathered the storm, and navigated our way back to profitability and sustainability,” Tony stressed. Owusu-Boateng added, “We even lost good staff and prominent clients to universal banks, but that did not deter our focus. Instead, we found ways to create value for our clients and the company.”

Despite these setbacks, the companies remained committed to their goals and continued to innovate and adapt. Today, Sinapi Aba and OISL are leading micro-finance institutions making them household names in the country. The institutions commitment to creating a positive impact on the community and building strong relationships with its clients will drive growth and success for years to come.

Interacting with Atul Tandon, the CEO of Opportunity International NGO- the mother company of both Sinapi Aba and OISL, he intimated that the mother company has consistently demonstrated its commitment to sustainability and social impact since the establishment of Sinapi Aba and OISL. Notably, the organization has never withdrawn profits or dividends, instead reinvesting them into the business to ensure its continued growth and sustainability.

Atul expressed his delight in seeing vulnerable individuals, particularly women, receive support to develop their skills and become self-sufficient. He shared a poignant story of a young woman who received financial assistance to start a small table-top business in a remote and underdeveloped community, where traditional banks rarely venture. Despite the woman lacking a proper address and identification, the financial institution took the time to understand her needs and provided her with the necessary support to establish a sustainable livelihood.

Atul noted that stories like these bring him immense joy and fulfillment, highlighting the impact that Opportunity International NGO and its subsidiaries, Sinapi Aba and OISL, are having on the lives of marginalized individuals. By providing access to financial services and support, these organizations are empowering people to break the cycle of poverty and improve their socio-economic well-being.

Dr. Ernest Addison, Governor of the Central Bank of Ghana, at the 20th Anniversary Celebration of Opportunity International Savings and Loans, commended the two institutions for their significant contributions to financial inclusion and sustainable economic growth in Ghana.

He emphasized the importance of innovative products and services to deepen financial inclusion, particularly for the “unbanked” segments of the population.

Additionally, he encouraged the institutions to focus on sustainability, climate-related financial risks, and green finance, aligning with the global agenda. He noted that green funding opportunities are available to support sustainable lending activities.

Finally, he reaffirmed the Bank of Ghana’s commitment to ensuring that financial institutions operate soundly and within regulatory and legal boundaries.

In conclusion, Sinapi Aba Trust and Opportunity International Savings and Loans have demonstrated a commitment to social impact and sustainability in Ghana’s financial sector. With a shared mission to provide financial inclusion and economic empowerment, they have made a significant impact on the lives of over 1.5 million clients. Despite facing challenges, they have remained committed to their goals, innovating and adapting to prioritize sustainability and customer satisfaction.

Their approach has led to long-term profitability and a positive impact on the community. As they continue to expand and innovate, their commitment to social impact and sustainability will remain at the heart of their business model, driving growth and success for years to come.