Bank of Ghana introduces Enterprise Credit Scheme to assists SMEs access funding from banks
Business & Economy section is brought to you by Jiji.gh — #1 Ghanaian online marketplace
Visit website

Bank of Ghana introduces Enterprise Credit Scheme to assists SMEs access funding from banks

- The Bank of Ghana has announced the creation of a Enterprise Credit Scheme to help Small and Medium Enterprises (SMEs)

- This was introduced as such businesses face challenges when it comes to accessing funds from financial institutions

- The project is being is done by the Ghana Incentive-based Risk System for Agricultural Lending (GIRSAL) and the National Banking College (NBC)

Our Manifesto: This is what YEN.com.gh believes in

The Bank of Ghana has announced the creation of an Enterprise Credit Scheme to provide support to Small and Medium Enterprises (SMEs).

The package is particularly for SMEs in the agricultural value chain, the Second Deputy Governor of the central bank, Elsie Addo Awadzi, said.

This comes in the wake of challenges related to accessing credit by small businesses.

READ ALSO: Africans paying more for debts accumulated; concerns raised about continent's financial future

Awadzi noted that the plan is spearheaded by the Ghana Incentive-based Risk System for Agricultural Lending (GIRSAL) and assistance by the National Banking College (NBC).

An amount of GHC 2 billion has been projected to implement the initiative, which will be accumulated from 2.0% of the primary reserve kept by the banks.

Per a report by citibusinessnews.com, the plan is to give training to banks and related financial institutions with the requisite practical knowledge and skills.

This is intended to enable them increase access to finances to agriculture and agribusiness organizations.

The training programme is also intended to help the capacities of staff of the beneficiary institutions.

This would help them appraise in an appropriate way the agricultural projects that need funding to reduce the issue of loans that don’t perform.

In other news, a Kenya-based B2B e-commerce startup, Sokowatch, is set to revolutionize the African supply-chain industry with a focus on informal retailers.

READ ALSO: Akufo-Addo reveals VW and Toyota would start assembling cars in Ghana

Sokowatch raised $14 million in funding and has created a platform that connects merchants with local and multinational suppliers.

The suppliers include business giants such as Unilever and Proctor and Gamble, and Sokowatch’s plan is to digitize orders, payments and logistics.

Per a report by techcrunch.com, Sokowatch, which was launched in 2016, raised a $2 million seed round in 2018.

It has since then expanded into other African countries such as Rwanda, Tanzania and Uganda. The chief executive officer (CEO), Daniel Yu, has hinted that Sokowatch intends to soon broaden its clients base from working-capital to data-analytics and target new African markets.

The business has also revealed plans of using its infrastructure to enter into business-to-consumer online retail in the near future.

READ ALSO: Bank of Ghana launches online platform for forex trading

Read the best news on Ghana #1 news app. Install our latest app for Android and read the best news about Ghana

Yenkasa: Coronavirus: Is Ghana ready? | #Yencomgh

Subscribe to watch new videos

Do you have a hot story or scandal you would like us to publish on YEN.com.gh? Please contact us on Facebook or Instagram now!

Source: Yen News

Online view pixel