Ghana: FMO, BIO arrange $54 million credit for SMEs
The syndicated facility will increase access to finance for local SMEsIn the series of support for SMEs in Africa, the Netherlands Development Finance Company (FMO) and Belgian Investment Company for Developing Countries (BIO) have provided a credit facility to finance small and medium enterprises (SMEs) in Ghana through the financial sector. In the $54 million syndicated financial package directed to Fidelity Bank Ghana, $25 million A-loans were provided by FMO while BIO provided $15million. Other participants of the syndicated facility include Symbiotics which provided $6 million; Oikocredit provided $5 million while Incofin provided $3 million. Jurgen Rigterink, CEO of FMO said "this syndicated facility is a next step in a longstanding relationship between FMO and Fidelity. It will increase access to finance for local SMEs and will therefore have a great impact on local companies and the creation of jobs." On the other hand, Mr. Jim Baiden, the Managing Director of Fidelity said "FMO and Fidelity have had a long-standing partnership based on our mutual interest in developing the SME sector and this facility signifies our growing relationship with development financiers; our new partnership with BIO, Oikocredit, Incofin and Symbiotics is expected to broaden our coverage of SME financing in Ghana." SMEs in Ghana contribute about 70 percent to the country's GDP and account for 90 percent of businesses in Ghana. The credit facility will spur growth and development of SMEs in Ghana.