Mr Ken Ofori-Atta, the Minister of Finance has announced that the government will begin major interventions to boost private sector credit to support for the business community.

Already, he said the government had engaged many stakeholders with respect to access credit for the private sector to grow.

Business24

Delivering the 2020 budget to parliament on Wednesday, Mr Ofori-Atta said the key institutions to anchor the shift would be the National Development Bank (NDB) and the Ghana Infrastructure Investment Fund (GIIF).

He said the government would establish the Enterprise Credit Scheme (ECS) to support the private sector to ensure that they accessed a reasonable level of lending rates to grow and create employment.

Mr Ofor-Atta said the Government was working together with the Banking Community to launch a GHS2 billion-credit and guarantee scheme in 2020.

He noted that the initiative would be structured to incentivise banks to lend to private sector at discounted lending rates and would be targeted at specific industries including agri- business, manufacturing, hospitality and tourism and the tech-sector amongst others.

Mr Oforu-Atta stated that the government would partner Fintech companies, local Banks and mobile money operators to deliver micro credit to Ghanaian businesses and individuals.

The intervention, he explained would seek to deliver quick loans on favourable terms using technology driven platforms to do the credit assessment.

The Minister said the initiative was in line with Government’s digitisation agenda and offered an opportunity for small and medium businesses to apply for loans on their mobile phones with minimal human intervention.

He said the initiative would commence in the first quarter of 2020 and would provide the needed micro capital for business expansion and capital expenditures. “It will also support the working capital needs of small Ghanaian businesses. Our market women will be able to access credit using their mobile money wallets to stock up goods in order to sell more.

The initiative is expected to increase productivity and profitability as well as contribute to job creation.
This is in direct response to our findings from the nationwide survey,” he said.

He said the government would encourage the establishment of Private Equity, Venture Capital and Mutual Funds, which will improve the ecosystem for start-ups.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.