Ghana's central bank announces new support to SMEs
It will inject $100 million into the agricultural sector to reduce the high risk associated with this industry.The Governor of the Bank of Ghana (BoG), Abdul-Nashiru Issahaku, has revealed that the BoG would inject $100 million (€87 million) into the agricultural sector to reduce the high risk associated with this industry that prevents banks from lending to small farmers.
He said this would also help reduce the high importation of food items into the country, increase exports, reduce poverty and boost digital financing, the Chronicle reports.
The agricultural sector's contribution to the country's GDP is nearly 20 per cent, but the sector has experienced almost no growth in 2015 (+ 0.04 per cent).
The governor also stated that he will compel major players in the financial sector to come up with policies that would encourage lending to SMEs, such as increasing transparency in bank rates.
According to official figures, SMEs represent 90 per cent of all registered businesses and contribute over 60 per cent to Ghana's GDP.