The Government of Ghana is to provide between eight and 12 per cent interest rates loans to small-medium-sized enterprises (SMEs), especially to agribusinesses to expand for export.
The SMEs On-lending facility would be jointly managed by the 24-Hour Economy Secretariat under the Office of the President and the Bank of Ghana, Development Bank of Ghana and some private financial institutions.
The facility part 24-hour Economy Policy electioneering promise by the governing National Democratic Congress (NDC) ii the run-up to the 2024 general elections.
Dr Ishmael Nii Amanor Dodoo, Head of Innovative Finance, Markets and Partnership at the 24-Hour Economy Secretariat, announced the proposed facility during the media launch of the 2025 Horticulture Expo in Accra, on Tuesday.
Dr Dodoo said the unique financing model for agribusinesses and exporters was designed by government to enable those enterprises to deal with forex fluctuations and be competitive on the international market.
For agri-enterprises to access the SMEs On-lending facility, one has to belong to a recognisable association such as the Federation of Association of Ghanaian Exporters (FAGE) to de-risk investment payments to ensure loan recovery and sustainability of the facility.
The facility would also include provision of seed capital, extension services and technical capacity-building opportunities for agribusiness farmers to expand and add value to their products and services.
“This is not politics but a citizen-led initiative to grow agricultural-based businesses to take charge of our economy,” Dr Dodoo stated.
The 24-Hour Economy Policy, he explained, was about ensuring partnership with the private sector to unlock financial investments for agribusinesses, promoting food sufficiency and accelerating job creation opportunities for the Ghanaian youths.
Dr Dodoo said: “So, the 24-hour Economy Policy intends to increase our outputs, add value to our raw materials and ensure robust productivity.
“Ghanaians must take control of the US$77 billion GDP of our economy and that required us to deal with structural deformities in the economy and ensure strategic value chain.
“For instance, we need to take charge of the US$1.2 billion textile industry and ensure supply chain efficiency.”
Mr. Davis Narh Korboe, President of Federation of Association of Ghanaian Exporters, in his welcome remarks, expressed the Association’s determination to exceed five-billion-dollar export of non-traditional exports.
The second edition of the Horticulture Expo will take place at the Accra International Conference Centre (AICC) from June 11 to 13, this year.
The expo is expected to attract over 400 exhibitors and 5,000 participants both locally and internationally, to engage in business-to-business meetings, networking and seminars.
It is to aid Ghanaian exporters to connect to the international markets and forge partnerships for expansion of their businesses.
It would also enable exporters to be competitive on the global markets, adopt innovative approaches in doing business and adding value to their products.
Some of the key commodities that would be promoted and highlighted during the expo include coconut products, mango, pineapples, sweet potatoes, onions and growing of chilies.
GNA