The Impact of Automated Information Systems in the Revival of Distressed Credit Unions in Ghana by Fostering Project.
A Case Study of Salaga, Chamba, and Kpandai Credit Unions.

The Impact of Automated Information Systems in the Revival of Distressed Credit Unions in Ghana by Fostering Project.
A Case Study of Salaga, Chamba, and Kpandai Credit Unions.

Joab Darkwa

This study investigates the impact of the automated information systems introduced (as a key strategy) by the Food Security Through Co-operatives in Northern Ghana (FOSTERING) Project in distressed credit unions in these three areas: Salaga, Chamba, and Kpandai in the eastern corridor of northern Ghana. The feasibility studies undertaken by the project in 2012/13 revealed that most of the credit unions in the eight participating districts of the project in the eastern corridor were characterized by severe insolvency. However, due to the key role that the project wanted the credit unions (CUs) to play towards the attainment of its goal, the strategy to computerize the operations of the CUs was adopted for the project. The methodology involved a case study approach, with both qualitative and quantitative methods applied. The data collection methods were questionnaires involving the credit unions’ officials, and document review. The results of this study are in line with empirical studies that revealed the significant impact of AIS on institutional performance. The findings point to the fact that the automation of the CUs information systems has greatly enhanced the revival of the distressed credit unions. Again, the CUs have all attained the immediate and intermediate targets set by the project, and realized significant growth. The study concludes that the implementation of AIS in credit unions in Ghana can significantly affect and impact on them positively. Therefore, recommendations are given for CUA and CU leaders to channel much resources and focus on leveraging on the advancement of technology to the strategic development of credit unions and the CU movement in Ghana. Project donors or managers are urged to identify and anticipate the impact of AIS in credit unions in subsequent CU development projects.

Msc Management Information Systems

Ghana Technology University College

May 2017

Dr. William Brown-Acquaye