"BII, United Kingdom\u2019s Development Finance Institution announces US$50m support for Ghanaian SMEs"

" BII, United Kingdom\u2019s Development Finance Institution announces US$50m support for Ghanaian SMEs \r\nThe British International Investment (BII), United Kingdom\u2019s Development Finance Institution, has\u00a0 announced the establishment of a new platform, with commitment funding of US$50 million dollars to support 150 Ghanaian Small and Medium-size Enterprise (SMEs).\r\n\r\nThe platform called Growth Investment Partners (GIP) will be a new alternative investment option for long-term and flexible loans of between US$500,000 \u2013 US$5 million, equivalent in local currency, to meet the needs of local businesses.\r\n\r\nBeyond the loan, SMEs will also receive business support services and capacity building in areas of financial management, corporate governance and environmental and social practices, to enable the sector grow in a productive, sustainable and inclusive way.\r\n\r\nMr Chris Chijiutomi, BII Head of Africa, who announced the initiative on Monday in Accra, said GIP would contribute to SME\u2019s key challenge of access to funding and unlock the economic potential in the country.\r\n\r\n\u201cSME\u2019s are important to the Ghanaian economy as they create jobs and make a significant contribution to the country\u2019s gross domestic product.\r\n\r\nHowever, they face many challenges with accessing growth capital through traditional funding sources including high interest rates, short-term loans, high collateral requirements and currency mismatches,\u201d he said.\r\n\r\nMr Chijiutomi said GIP working with relevant stakeholders would provide funding through a variety of financing options to meet the capital needs estimated to be about $4.8 billion of local businesses to support the country\u2019s economic reforms.\r\n\r\nMr Jacob Kholi, the Chief Executive and Investment Officer (CEIO), said GIPs investment tenor was between five years and 10 years depending on the needs of the business.\r\n\r\n\u201cGIP is not providing subsidised funding and will price its products to earn a risk adjusted return with the Ghana reference Rate (GRR) as the basis,\u201d he said.\r\n\r\nHe said for SMEs to qualify they needed to have a turnover up to the local currency equivalent of US$15m, total assets up to US$15million in local currency equivalent, and employees of between 10 and 300.\r\n\r\nThe business, he said must be incorporated in Ghana, main operations must be in Ghana, and at least 50 per cent of its revenues generated from its operations in the country.\r\n\r\nMr Kholi said businesses in mining, oil and gas, and ammunition\/hard liquor\/tobacco were excluded from the initiative.\r\n\r\nMr Albert Essien, Chairman Growth Investment Partners Ghana LTD, said the key areas critical for productive, sustainable, and inclusive growth of SMEs includes good corporate governance, environmental, social, and sound financial management practices.\r\n\r\nTo complement the operations of GIP, he said, the BII had established a technical assistance programme, the Ghana Investment Support Programme to provide technical support to SMEs to make them investment ready as well as post investment.\r\n\r\nMr Essien stated that the BII in the past, sponsored the establishment of the Ghana Venture Capital Fund (GVCF), a US$6million fund, together with a number of Ghanaian institutions, and other Direct Foreign Investment.\r\n\r\nGVCF was the first venture capital fund to be established in Sub-Saharan Africa, outside of South Africa. BII played the pioneering role at the time, just as it is doing with GIP.\r\n "

"BII, United Kingdom\u2019s Development Finance Institution announces US$50m support for Ghanaian SMEs"

OAfrica Leads National Call to End Child Labour in Galamsey Sites on July 30AMP

Letshego Ghana Partners with Catholic Church to Power Over 4,000 Institutions with Solar EnergyAMP

Ato Essien’s Plea Bargain Fueled by Fear – KSMAMP