SME financing increases in Ghana

Mar 01, 2012

Loans granted to small and medium-sized enterprises (SME) in Ghana have increased since 2010.

According to the Doing Business ranking established by the World Bank, the country is in 46th position (out of 183 countries) when it comes to access to credit, after ranking109th in 2010, according to the African Economic Outlook website.

This improvement can partly be explained by efforts from the government. In 2010, the minister for industry and trade introduced a training programme and provided grants to 140 SMEs and micro-enterprises.

A new regional fund called WAEMGF was also introduced in august 2011 in order to contribute to SME financing in West Africa. Its global financial portfolio is €40.6 million.

Another initiative comes from the French Development Agency (AFD), which is supporting the Ariz project in Ghana, providing guarantees to facilitate access to finance for SMEs and MFIs through commercial banks.

At the end of 2010, the total commitment of Ariz in Ghana was €6.09 million.

Furthermore, Proparco, part of the AFD, announced on February 21st that it granted a $10 million (€7.4 million) credit line to HFC Bank Ghana Limited in order to support mortgages and SME financing, which constitute 60 percent of its portfolio, Ecofin news agency reports.

SMEs are responsible for 50 to 60 percent of the GDP of countries the region, according to a study from Business Climate - which is part of the European Development Fund.ADNFCR-2976-ID-801306751-ADNFCR