The government has launched a loan scheme offering flexible interest rates and repayment terms to support women, young people and persons with disabilities operating micro, small and medium-scale enterprises (MSMEs).
The scheme, being implemented under the Ghana Women and Youth Employment and Social Cohesion (GWYESCO) Programme, was launched in Bolgatanga in the Upper East Region.
Chief Executive Officer of the Social Investment Fund (SIF), Lawyer Abass-Adams Nurudeen, said the initiative was designed to address financial challenges facing women- and youth-led businesses, particularly high interest rates, short repayment periods and stringent collateral requirements.
He said the programme, supported by the African Development Bank, had earmarked 50 million US dollars for a loan scheme targeting women and youth-led enterprises.
According to him, beneficiaries will access loans at an interest rate of eight per cent, compared with the 25 to 30 per cent generally charged by commercial banks.
He explained that while commercial bank loans often have repayment periods of six months to one year, the GWYESCO scheme offers between one and two years, with an additional three-month moratorium before repayment begins.
Mr Abass-Adams said the moratorium would allow beneficiaries to invest the funds in their businesses and generate income before beginning repayment.
He added that the scheme also provides flexible guarantee arrangements, including individual guarantors and the use of personal assets as security.
The programme targets women aged 18 and above, men between 18 and 35 years, as well as persons with disabilities. Its focus is on the agribusiness value chain, including farming, aggregation and other related activities.
The SIF CEO said priority would be given to groups and Village Savings and Loans Associations, explaining that group lending would place repayment responsibility on the participating members.
He noted that the Fund was working with Apex Bank, Ghana Commercial Bank and Consolidated Bank Ghana to facilitate the lending process.
Beyond providing credit, the programme will offer beneficiaries business development training, financial literacy support and business-to-business linkages to improve their financial management, marketing and business operations.
Mr Abass-Adams said the initiative was not simply about giving out money but also equipping beneficiaries with the knowledge and skills needed to manage their businesses and repay the loans.
He described the programme as one of President John Dramani Mahama’s flagship initiatives to promote economic opportunities for women and young people, particularly in parts of northern Ghana where poverty and youth migration remain major concerns.
The programme is being implemented in the Upper East, Upper West, Northern, North East, Savannah, Central and Eastern regions under the supervision of the Ministry of Finance.
He said the scheme was intended to address limited access to affordable credit and create an enabling environment for young people to establish sustainable businesses rather than migrate in search of livelihoods.
The Bolgatanga launch also served as a beneficiary mobilisation exercise. Mr Abass-Adams said details of prospective beneficiaries would be collected and registered through a digital platform before partner banks undertake loan appraisals and provide the necessary business development and financial literacy training.
He stressed that the loans were not grants and that beneficiaries would be required to repay them, adding that the involvement of financial institutions and the appraisal process were intended to promote accountability and ensure the sustainability of the scheme.
A1 Radio | 101.1Mhz | Joshua Asaah
