By Jibril Abdul Mumuni
Accra, Aug. 12, GNA – A US$5 million financing programme will combine affordable credit with financial literacy and business development training to support women, youth and Micro, Small and Medium Enterprises (MSMEs) in Ghana.
The 36-month intervention, being implemented under the Ghana Women and Youth Empowerment, Employment and Social Cohesion Access to Finance Compact, is expected to benefit about 3,000 people, with an initial tranche targeting approximately 800 beneficiaries.
The programme is a partnership between Consolidated Bank Ghana Limited (CBG) and the Social Investment Fund (SIF), with financing to be delivered through group lending, input financing and equipment financing arrangements, depending on beneficiaries’ needs.
Speaking at the signing ceremony in Accra, Dr Naomi Wolali Kwetey, Managing Director of CBG, said access to finance alone was not sufficient to guarantee business growth and sustainability.
She said the programme would provide business development services and financial literacy training to equip beneficiaries with the knowledge and skills needed to manage their enterprises effectively and utilise the financing responsibly.
Dr Kwetey said CBG was committed to ensuring transparent beneficiary selection, sound credit appraisal, timely disbursement and effective monitoring to achieve the objectives of the initiative.
She said strengthening the capacity of entrepreneurs would help improve business performance, create employment opportunities and contribute to community development.
The emphasis on training comes against the backdrop of persistent challenges faced by many MSMEs, including poor bookkeeping, weak accounting practices, inadequate financial management skills and limited business planning capacity.
Such constraints can affect businesses’ ability to access and manage credit, expand operations, repay loans and remain sustainable.
Mr Abass Adam Nurudeen, Chief Executive Officer of the SIF, said training would be one of the most important aspects of the programme because beneficiaries must understand how to utilise credit productively.
“It is a whole package because if you are giving somebody access to credit, first and foremost you must train him as to how to put the credit he is accessing to good use,” he said.
Mr Nurudeen said beneficiaries would receive training in basic accounting, bookkeeping and enterprise management to strengthen their businesses and improve their chances of success.
He said the financing arrangements would be tailored to the requirements of beneficiaries, with group lending intended to facilitate access to credit, while input and equipment financing would support enterprises requiring productive assets and business inputs.
Mr Nurudeen said the broader microcredit programme was expected to provide access to finance for about 8,000 women and youth-led SMEs, particularly in the Northern, Central and Eastern regions, where poverty and unemployment remained significant concerns.
He said the intervention was designed to empower beneficiaries economically, reduce vulnerability and help address some of the drivers of fragility in underserved communities.
The programme’s approach reflects growing emphasis on combining access to capital with enterprise development support, particularly for businesses that may lack the financial management and planning capacity required to use credit effectively.
The Council for Scientific and Industrial Research (CSIR) has also advocated skills development and business training as more sustainable interventions than grant-centred support programmes.
By combining financing with training and business development support, the initiative seeks to improve the capacity of beneficiaries to manage their enterprises, strengthen livelihoods and create sustainable employment.
Mr Nurudeen said empowering entrepreneurs with both financial resources and business skills would help create sustainable jobs, strengthen livelihoods and enhance social cohesion within beneficiary communities.
GNA
Edited by Kenneth Sackey
Reporter: Jibril Abdul Mumuni