SIF Rolls Out US$50m Loan Scheme for Women and Youth in Bolgatanga

By – Gladys Apuweni

The Social Investment Fund (SIF) has rolled out a loan scheme under the Ghana Women and Youth Employment and Social Cohesion (GWYESCO) Programme to support women and youth led micro, small and medium sized enterprises (MSMEs), with the launch in Bolgatanga bringing together women from various groups across the Upper East Region

 

The initiative, sponsored by the African Development Bank (ADB), has an allocation of US$50 million for a loan scheme aimed at improving access to affordable financing, creating employment opportunities and strengthening the economic independence of women and young people

Speaking at the launch, Chief Executive Officer of the Social Investment Fund, Mr Nurudeen Abass Esq., said the programme was designed to address the financial challenges confronting small businesses, particularly high interest rates, short repayment periods and stringent collateral requirements

He explained that while commercial banks could charge interest rates of between 25 and 30 per cent, the scheme would offer loans at an interest rate of eight per cent. Beneficiaries would also enjoy repayment periods of between one and two years, alongside a three month moratorium to allow them to establish or expand their businesses before commencing repayment

Mr Abass said the scheme would introduce flexible guarantee arrangements, including individual guarantees and the use of assets as security, to help address barriers that prevent many small business owners from accessing credit

He noted that the programme prioritised women aged 18 years and above, men between 18 and 35 years, and persons with disabilities. Businesses operating along the agricultural value chain, including farming, aggregation and other related activities, would receive particular attention

The initiative would also target groups, especially Village Savings and Loans Associations (VSLAs), while beneficiaries would receive business development training, financial literacy education, marketing support and business to business linkages to strengthen their enterprises and improve their capacity to repay the loans

Mr Abass said the programme covered five northern regions, as well as the Central and Eastern regions, and was intended to reduce poverty, promote social cohesion and address the migration of young people in search of economic opportunities elsewhere

He stressed that the facility was a loan scheme and not a grant, explaining that participating financial institutions would assess applications and monitor the use of funds to promote accountability and ensure repayment

Regional Manager for the Northern Sector of Consolidated Bank Ghana, Mr Isaac Larry, reaffirmed the bank’s commitment to the initiative, saying applicants would be assessed based on their business plans, intended use of the funds and ability to repay

He explained that repayment schedules would be structured around beneficiaries’ cash flows. Farmers, for instance, could repay in line with harvesting seasons, while businesses generating daily revenue could adopt monthly repayment arrangements

Mr Larry added that the bank would deploy field officers to engage beneficiaries regularly and monitor repayments to ensure the sustainability of the scheme

The programme is being implemented in collaboration with participating financial institutions, including Apex Bank, Ghana Commercial Bank and Consolidated Bank Ghana, as part of efforts to expand access to finance and support the growth of women and youth led enterprises

Source – gbcuraonline.com