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CASE: SINAPI ABA Sinapi Aba Savings and Loans (SASL) Limited is a Non-Banking Financial Institution licensed under the Non-Bank Financial Institutions Act 2008 (Act774). The company was licensed by the Bank of Ghana in April 2013 as a Savings and Loans company to begin operating in that capacity It is a company limited by Shares. The mission statement of the company is to serve as the Mustard Seed through which opportunities for enterprise development and income generation are provided to the economically disadvantaged to transform their lives. Sinapi Aba Savings and Loans has evolved as a leading microfinance Institution in Ghana. Sinapi Aba Trust supports small and micro businesses with credit and capacity building services. Thus Sinapi Aba Trust has transformed into a regulated deposit taking institution offering clients the opportunity to save and receive credit. The company has forty seven (47) networked branches and agencies offering its services to clients across Ghana. The company has a team of dedicated staff working hand-in-hand with its valued customers to bring holistic change to individuals, families and communities. The company operates two business models which are micro loans and savings The structure of the Ghanaian economy is such that there are more business activities within the informal sector that are largely unable to meet the transaction requirements of the major retail banks. There are also reports by the IMF indicating most African economies having a larger percentage of their economies in the informal sector. These include small scale traders and businesses who may all be looking for short term financial facility. Hence, Sinapi Aba is one of the numerous companies reaching these markets only in Ghana with innovative financial products. There are evidences of opportunities existing in other African countries especially within the West African Region. The most attractive business model is the micro loan sector of the company's product segment. This sector of the company's business is having categories of products as the following: Sinapi Group Loan, Micro Enterprise Loan, Sinapi Festive Loan, Small and Medium Enterprise Loan, Sinapi Business Asset Loan, Sinapi Agricultural Loan, Micro-school Loan and Church Loan facility. According to the statistics by the Bank of Ghana, for 2016 economic outlook, most micro loans and saving companies are not able to withstand the harsh conditions within the financial industry hence fold up in no time of their inception. It went on to indicate that, the major problem identified is the processes adopted in processing loans by these companies which tend to create opportunities for customers to default as well as not achieving the purpose for which the facilities were given Agriculture is a dominant aspect of the Ghanaian economy and most West African countries aitracting the support of donor countries and bilateral partners. This means the Agriculture loan facility can yield better returns if well managed and processes re-engineered to suit the market conditions. The World food Organization (WFO) estimates that total food production in Africa will drop by almost 20% in 2017 resulting in severe food shortages. Most African governments are now partnering with private institutions to invest massively into agriculture to ensure some level of food security, including those in West Africa. The number of Churches also keep on increasing as Africans are highly religious indicating an opportunity for the Church loan facility to strive if well managed. The company need to expand operations into other countries to take advantage of these opportunities as well as maintaining customer acceptance and satisfaction as there may be intense competition. NB: This case study is based on real life company but the details have been altered for examination purposes. Section A Question one Write a report to board of directors of SNINAPI ABA to: a) Recommend strategic international market assessment tool and processes appropriate for market evaluation to inform the decision of the company to enter into any west African market. 20marks