By Jibril Abdul Mumuni
Accra, Aug. 12, GNA – The Consolidated Bank Ghana Limited (CBG) and the Social Investment Fund (SIF) Tuesday signed an agreement to disburse US$5 million in financing to women, youth and micro, small and medium-sized enterprises (MSMEs).
The support falls under the Ghana Women and Youth Empowerment, Employment and Social Cohesion Access to Finance Compact.
The agreement forms part of efforts to expand access to affordable finance, promote entrepreneurship and create sustainable jobs among vulnerable groups across the country.
The project seeks to improve access to finance, business development services and financial literacy for women and youth-led enterprises, expected to create employment and contribute to economic growth across beneficiary communities.
Speaking at the signing ceremony in Accra, Dr Naomi Wolali Kwetey, Managing Director of CBG, said the partnership reflected the shared commitment of the two institutions to empowering women and young people through inclusive financial services.
The US$5 million facility, equivalent to about 55 million Ghana cedis, would be deployed over a 36-month period to support approximately 3,000 beneficiaries, with the first tranche expected to reach about 800 individuals and businesses.
Dr Wolali Kwetey said CBG would ensure a transparent beneficiary selection process, sound credit assessments, timely disbursement of funds and effective monitoring of beneficiaries to guarantee the success of the programme.
She noted that beneficiaries would also receive business development services and financial literacy training to strengthen their capacity to manage the financing responsibly and grow sustainable enterprises.
“Today we open a pathway for thousands of Ghanaian women and young people to grow their businesses, create jobs and improve their livelihoods,” she said, adding that CBG was fully committed to delivering on the objectives of the programme.
Mr Abass Adam Nurudeen, the Chief Executive Officer of SIF, described the agreement as a significant milestone in the implementation of the programme’s microcredit component.
He expressed confidence in CBG’s capacity to achieve the programme’s objectives and ensure timely disbursement and recovery of the funds to support a revolving credit scheme.
The broader microcredit programme is expected to provide access to finance for about 8,000 beneficiaries, particularly women and youth-led SMEs in the Northern, Central and Eastern regions, Mr Nurudeen noted.
He said the intervention was targeting areas with high poverty and unemployment levels, especially in northern Ghana, where economic empowerment was expected to help address some of the drivers of fragility and enhance social cohesion.
He explained that the initiative went beyond access to credit to include training in bookkeeping, basic accounting and enterprise management for the improvement in prospects of business success among beneficiaries.
The SIF Chief Executive said the programme would utilise group lending, input financing and equipment financing mechanisms, depending on the needs of beneficiaries, to ensure prudent use of resources and improve loan recovery rates.
He noted that the initiative complemented government’s efforts to promote women’s economic empowerment, saying supporting women entrepreneurs would enhance household welfare, access to education and healthcare, and broader community development.
Women play a significant role in Ghana’s MSME sector, accounting for a substantial share of owners in the informal economy, particularly in trade, agro-processing and services.
Despite their contribution to employment and household incomes, many women-led businesses face persistent challenges in accessing affordable credit, markets, technology and business advisory services.
MSMEs, which constitute the backbone of Ghana’s economy, also continue to grapple with high borrowing costs, inadequate collateral, limited financial literacy, poor record-keeping practices and restricted access to long-term capital, factors that constrain growth and business sustainability.
GNA
Edited by Agnes Boye-Doe
Reporter: Jibril Abdul Mumuni