COVID-19: Akufo-Addo outdoors GHC1 billion cap business support programme
- The government has launched a GHC1 billion Coronavirus Alleviation Programme (CAP) fund for Small and Medium Scale Enterprises (SMEs) in Ghana
- The fund is the collaborative effort between the government and selected banks in Ghana
- GHC600 million out of the amount would be provided as soft loans to the SMEs
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President Akufo-Addo has launched the GHC1 billion Coronavirus Alleviation Programme (CAP) Business Support Scheme for Small and Medium Scale Enterprises (SMEs) in Ghana.
The Scheme, outdoored on Tuesday, May 19, 2020, is the product of a collaborative effort between the government and selected banks.
According to President Akufo-Addo, COVID-19 has affected economies all over the world and has led to reduced productivity, job losses, and a steep decline in revenues for government, businesses, households and individuals in Ghana.
READ ALSO: COVID-19: Over 100 businesses in Ghana lose over GHC40 million
Per a report by graphic.com.gh, SMEs, which account for about 70% of Ghana’s Gross Domestic Product (GDP) and represent about 92% of businesses, are amongst the hardest hit in the country.
In that respect, President Akufo-Addo noted that SMEs play a crucial role in Ghana’s growth and development agenda and therefore deserve special attention from the government.
YEN.com.gh has learned that GHC600 million out of the amount would be provided as soft loans to the SMEs with an up to a one-year moratorium, a two-year repayment period, and a 3% interest rate.
Again, a number of banks would provide negotiated counterpart funding to the tune of GH¢400 million.
The package would be managed by the National Board for Small Scale Industries (NBSSI) and is likely to attract about 180,000 beneficiaries across the country.
Those eligible to access the fund should be either self-employed, sole proprietors, or engaged in a limited liability, partnership, or joint venture arrangement.
YEN.com.gh earlier reported that Parliament has granted approval for GHC1.2 billion to be used to fund the Coronavirus Alleviation Programme (CAP).
The finance committee of Parliament gave the government approval to access funds from the Contingency Fund to support the CAP.
Information available shows this the decision was reached after the minister of finance, Ken Ofori-Atta, presented a policy document on CAP to seek approval for the amount.
READ ALSO: Government to support Ghanaian industries with GHC3 billion
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Source: YEN.com.gh
