Ghana disburses $790,000 loan to SMEs as covid-19 palliative
London, Nov. 10, 2020 (AltAfrica)-Ghana has so far disbursed $790,000 about GH¢600 million to 200,000 Small and Medium Enterprises (SMEs) as loans under the Coronavirus Alleviation Programme to aid their recovery.
The palliative is part of a 2 billion Ghana Credit Guarantee Scheme under the Ghana Credit Programme which would provide guarantees for banks to lend to businesses that were affected by the pandemic.
Beneficiaries of the loans have a one-year moratorium and a two-year repayment period with an interest rate of 3 percent
According to the University of Ghana study in 2015, the SMEs sector, contribute about 70 per cent to Ghana’s Gross Domestic Product (GDP), and accounts for about 92 per cent of businesses in the country.
In a speech at this year’s Ghana Economic Forum organized by Business and Financial Times, Ghanaian President, Nana Akufo-Addo said “We have also launched a GHC100 billion CARES which will ensure an accelerated economy, but this cannot be achieved without partnership with the private sector”
The president said by dent of hard work and prudent management of the economy, his government had chalked a modest success in the entire socio-economic space with the country having one of the fastest GDP growth rates in Africa and the world.
The President said before the onset of Covid-19, the economy was tipped to grow by 6.8 percent in 2020, with GDP growth rate averaging 7 percent while inflation was targeted at 8.2 percent with fiscal debt projected at 4.7 percent.
He said all these economic indicators pointed to the fact that the country had an economy with solid fundamentals and was poised to make it better.
“These indicators of strong performance had led our country to become the recipient of foreign direct investment in West Africa with approximately 12.7 billion dollars since we came into government”, he said.
Minister of Finance, Mr Ken Ofori-Atta, in a mid-year budget statement said the economy was expected to grow at 0.9 per cent, with inflation expected to reach a double digit.
He stated that the banking sector and the private sector credit had moved from GH¢35 billion to over GH¢45 billion while assets increased from over GH¢100 billion to over GH¢133 billion.
He called for increased partnership with Ghanaian companies to build a world class economy for a sustainable development.
Data from the Bank of Ghana’s Composite Index of Economic Activities show that the economy is responding positively due to the robust interventions put in place by government.