Ghana pursues $1.7bn AFREXIM Bank funding for SME and infrastructure development
Ghana is negotiating a $1.7bn package of loans and support from the African Export-Import Bank (AFREXIM) to bolster its Small and Medium-Sized Enterprises (SMEs) and advance key infrastructure projects.
The Minister of State at the Ministry of Finance, Abena Osei Asare, revealed the initiative at the AFREXIM Annual Meetings and Africaribbean Trade and Investment Forum in Nassau, Bahamas.
The funding, if secured, will significantly aid Ghana’s efforts to navigate its economic challenges. Ms Abena Osei Asare highlighted the government’s innovative approach to supporting SMEs, emphasizing that the funds would address the myriad challenges faced by small businesses.
“The President will next month launch the SME Growth and Opportunity Fund, and this support, if we can finalize it at this meeting, will help a lot going forward and the larger economy,” she said.
This financial package is also earmarked for vital infrastructure projects, which are critical for sustained economic growth.
“The government wants to assist SMEs in several sectors, and meetings like the AFREXIM Bank Annual Gathering offer us an opportunity to engage with other multilateral institutions and development partners,” she added.
Strengthening a Crucial Partnership
AFREXIM Bank has been a pivotal supporter of Ghana’s economy. In 2022, the Bank extended $750m to Ghana for capital growth-related expenditures during a period of financial instability exacerbated by a debt restructuring announcement with bilateral creditors and commercial bondholders. This support was crucial in stabilising the Ghanaian cedi.
In addition, AFREXIM has facilitated Foreign Exchange Swap Arrangements with local banks and provided liquidity for Ghana’s international trade. This ongoing support underscores the importance of AFREXIM Bank in Ghana’s financial ecosystem.
Ghana, a founding member of AFREXIM Bank, holds 3,645 Class “A” shares, representing 2.41% of the Bank’s total shareholding through the Bank of Ghana. The Minister Asare chairs the shareholders’ meeting at the Annual Meetings, reinforcing Ghana’s strategic position within the institution.
