Trade Minister Launches $2.8 million fund to support MSMEs
As the engine of growth, the private sector has been advised to access financial services to improve their business performance.
In view of this, Trade and Industry Minister, Hannah Tetteh has launched a $2.8 million business development service. This will provide technical assistance to improve business operations and competitiveness in the private sector.
The business Development Fund, in its second phase, is a matching grant scheme that aims to provide the Micro Small and Medium Enterprise with technical assistance.
Out of the total grant amount available, 1.3 million dollars has been earmarked for projects in the area of renewable energy under the Ghana Energy Development and Access Project. This support for renewable energy is to stimulate and develop markets, suppliers and projects for renewable energies.
This will be targeted at electricity provision for mini-grid, grid-connected and off-grid applications. Small and Medium Enterprises account for over 80 percent of businesses in the country but are constrained by access to capital, markets and many other services.
Coordinator of the Micro Small Medium Enterprises, Francis Kusi, said the fund would subsidies a maximum of 50 percent of the total costs of approved projects. He said support is given to increase the creditworthiness of prospective clients and their partner banks.
This is to increase the number of new SME loans and also assist those SMEs to remain bankable. The scheme is to improve market information and public-private dialogue.
The Fund will also facilitate linkages between Micro SMEs, larger firms and markets through support to clusters of firms working with clusters of Micro SME suppliers.
The Business Development Services fund is focused on Micro SMEs throughout the country, with emphasis on value chain, such as cosmetics, fish, fruit, plastics, salt, palm oil and other value added activities.
By: e.tv Ghana
Accra, May 17, 2012
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