A €22 million credit facility under the second phase of the Ghana Private Sector Development Fund (GPSDF) has been made available to operators of small and medium-scale enterprises (SME) in the northern part of the country.
The SMEs could access loans between GH¢50,000 and GH¢1.1 million to expand their businesses and help reduce poverty levels and unemployment in the area.
The fund was financed by the Italian Government following an agreement signed between the governments of Ghana and Italy.
At the inaugural ceremony, the Regional Trade and Industry Officer, Mr Gilbert Sebik, said it was his belief that the facility would ultimately help improve the business climate in northern Ghana.
“I am happy with the criteria because many of the SMEs such as shea-butter and rice processing enterprises in the three northern regions are dominated by women who cannot expand their businesses because of lack of access to capital,” Mr Sebik stated.
He urged SMEs in the northern part of the country to make maximum use of the facility to create wealth for themselves and reduce “persistent poverty in the area”.
Mr Sebik entreated managers of the facility to relax some of the conditions a little where necessary, to enable as many people as possible to benefit from the facility.
In a speech read on his behalf, the Deputy Northern Regional Minister, Mr Moses Mabengba, mentioned inadequate access to finance, logistics management, low productivity, acquisition and application of appropriate technology.
The Director and Head of the Treasury Department of the Bank of Ghana, Mr Francis Andoh, stated that the credit facility was a long-term loan with interest rate between nine and 12 per cent.
He also indicated that the loan was attractive and advised the beneficiaries to draw up a good work plan to enable them to access the facility.
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