SG Ghana partners with PROPARCO to set up a €7.5 million credit facility
Finance Institution PROPARCO to support its client's growth with long-term resources.Societe Generale Ghana (SG Ghana) has signed on Thursday a $10 million (€7.5 million) credit facility with French Development Finance Institution PROPARCO to support its client's growth with long-term resources.
SG Ghana will use these funds to finance the capital expenditures of small and medium-sized enterprises (SMEs).
"This credit facility will increase the availability of long-term financial resources in the country and will enhance the financial depth of the banking
said PROPARCO's CEO Claude Périou in a press release.
He added that Ghana has made substantial progress in developing and improving the stability of its banking system and that new regulation and guidelines have notably made the sector more efficient.
"With an improved business environment and a dynamic private sector, the need for long term financing is substantial",
Managing Director of Societe Generale Ghana Gilbert Hie added that in
recent years, the growth of the Ghanaian economy has increased the demand for long term funding, and that there is a lack of funds for CAPEX investments and infrastructure funding.
He therefore believes that the seven-year loan agreement will allow SG Ghana to meet this growing need in long term resources.