Gov’t to launch millions of dollars-backed SME Growth and Opportunity Fund next month
President Akufo-Addo will next month – July 2024 – launch the SME Growth and Opportunity Fund.
The Fund is expected to help address the myriad challenges faced by small businesses in the country.
The launch of the SME Growth and Opportunity Fund was disclosed by the Minister of State at the Ministry of Finance, Abena Osei Asare, at the AFREXIM Annual Meetings and Africaribbean Trade and Investment Forum.
Government is expected to make available millions of dollars as seed capital for the Fund when launched next month.
The millions of dollars seed capital will be taken from the $1.7bn loan facility from the African Export-Import Bank (AFREXIM).
Ghana, at the AFREXIM Annual Meetings and Africaribbean Trade and Investment Forum commenced negotiations for 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 funding, if secured, will significantly aid Ghana’s efforts in supporting SMEs and to navigate its economic challenges.
“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,” Ms Abena Osei Asare said.
“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 for support,” she added.
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.
