The Ghanaian government would lend money to small and medium-sized businesses (SMEs) at interest rates ranging from 8% to 12%, with a focus on agribusinesses looking to grow for export.
The Office of the President’s 24-Hour Economy Secretariat, the Bank of Ghana, the Development Bank of Ghana, and a few private financial institutions will work together to jointly handle the SMEs On-lending facility.
The establishment is a component of the 24-hour Economy Policy electioneering pledge made by the ruling National Democratic Congress (NDC) in the lead-up to the general elections in 2024.
The proposed facility was revealed by Dr. Ishmael Nii Amanor Dodoo, Head of Innovative Finance, Markets, and Partnership at the 24-Hour Economy Secretariat, on Tuesday at the media launch of the 2025 Horticulture Expo in Accra.
The government created the special financing model for exporters and agribusinesses, according to Dr. Dodoo, so that these companies could be competitive on the global market and manage currency volatility.
In order for agribusinesses to use the SMEs On-lending facility, they must be members of a reputable organization, like the Federation of Association of Ghanaian Exporters (FAGE), which de-risks investment payments to guarantee loan recovery and facility sustainability.
In order to help agribusiness farmers grow and enhance their goods and services, the facility would also offer seed money, extension services, and technical capacity-building possibilities.
“This is not politics but a citizen-led initiative to grow agricultural-based businesses to take charge of our economy,” Dr Dodoo stated.
He clarified that the goal of the 24-Hour Economy Policy was to guarantee collaboration with the private sector in order to facilitate financial investments for agribusinesses, hence fostering food sufficiency and expediting the establishment of employment possibilities for Ghanaian youth.
According to Dr. Dodoo, the 24-hour economy policy aims to boost our outputs, make our raw materials more valuable, and guarantee strong production.
“Ghanaians must take control of the US$77 billion GDP of our economy and that required us to deal with structural deformities in the economy and ensure strategic value chain.”
“For instance, we need to take charge of the US$1.2 billion textile industry and ensure supply chain efficiency.”
In his welcome address, Mr. Davis Narh Korboe, President of the Federation of the Association of Ghanaian Exporters, stated that the Association is committed to exporting more than $5 billion worth of non-traditional goods.
This year, from June 11 to 13, the Accra International Conference Centre (AICC) will host the second Horticulture Expo.
Over 400 exhibitors and 5,000 attendees from both domestic and foreign countries are anticipated to attend the expo in order to network, hold seminars, and hold business-to-business meetings.
Its purpose is to help Ghanaian exporters establish connections with global markets and collaborate to grow their companies.
Additionally, it would allow exporters to add value to their products, embrace innovative business practices, and compete on international marketplaces.
Coconut products, mangos, pineapples, sweet potatoes, onions, and chili cultivation are some of the main commodities that will be advertised and showcased at the expo.
Source: newsthemegh.com