2022 Budget: Youth-led enterprises to benefit from Ghs 10 billion funding facility
Government has announced a Ghs 10 billion funding facility for youth-led enterprises in the country.
The funding facility, according to the Minister for Finance, is aimed at addressing challenges such as access to credit and finance faced by entrepreneurs and the youth at large in setting up businesses.
The YouStart initiative, the Minister for Finance noted during his presentation of the 2022 Budget Statement on the floor of Parliament on Wednesday, November 17, 2021, proposes to use GH¢1 billion each year to catalyze an ecosystem to create 1 million jobs.
“Mr. Speaker, YouStart is a vehicle for supporting young entrepreneurs to gain access to capital, training, technical skills and mentoring to enable them launch and operate their own businesses.
“This is an unprecedented, historic and comprehensive 10Bn Cedi initiative to improve access to finance, skills and promote entrepreneurship amongst our youth. We will activate the YouStart Programme nationwide.
“Entrepreneurs will be able to apply for support through a dedicated YouStart online portal,” stated the Minister.
According to the Minister, the YouStart Initiative will provide the youth with the following:
i. Training: Skills Development, Entrepreneurial Support and Business Advisory services;
ii. Funding: Access to Competitive Credit and Starter Packs;
iii. Enterprise Promotion: Mentoring and Access to Markets including Portals tofacilitate “digital linkages” between youth-led enterprises and other businesses and relevant Government agencies.
Packages to be offered to entrepreneurs under the YouStart Programme include;
i. District Level Loans under 10,000 GHC after 2-3 months of training.
ii. Soft loans of up to GH¢50,000 to help start-ups (in particular by young graduates and school leavers) and small businesses to expand;
iii. Starter packs (Soft loans tied to equipment acquisition) of up to GH¢50,000 for individuals and GH¢100,000 for associations/groups;
iv. A standardised loan package of between GH¢100,000 to GH¢400,000 at concessional rates for SMEs through financial institutions;
In view of the YouStart Programme, banks in the country, the Minister further noted, have resolved to collectively accelerate their portfolio allocation to qualifying SMEs by facilitating some Ghs 5 billion to SMEs over the next 3 years.
“Mr. Speaker, permit me to extend gratitude to the leadership of the commercial banks who engaged the President in October 2021. I am happy to report that, as a result the meeting, the Ghana Association of Banks, working with the various Banks, have resolved to collectively accelerate their portfolio allocation to qualifying SMEs to fast track our pace of economic recovery post-COVID. My ministry is working with GBA to conclude the terms to ensure the facilitation of 5Bn GHC over the next 3 years.
“In addition, the banking industry has committed GHC75m, over the next three years, to collectively engage in skills development programmes for a minimum of 150,000 young graduates and youth entrepreneurs by engaging in activities. To achieve this, the banks have pledged to review their internal processes and procedures to facilitate easier access to credit by SMEs,” remarked the Minister.
The YouStart Initiative, is anticipated to commence in March 2022.
