ABSA Bank has disbursed GH¢100 million under a new initiative meant to empower and drive the growth of Small and medium-sized enterprises (SMEs) in Ghana.
The initiative, under the bank’s 10 per cent SME Loan Programme, is in partnership with Mastercard Foundation, and it is a landmark financing programme from the bank to help transform the landscape of SMEs with a lot of focus on women-owned businesses, young entrepreneurs, agribusinesses and fintechs in Ghana.
It allows SMEs in scope of the programme to borrow up to GH¢11 million from Absa Bank at a remarkably low rate of 10 per cent per annum.
It also allows them to borrow up to GH¢1million without collateral as against the average commercial borrowing rates that have soared above 25 per cent making it harder for businesses to thrive and achieve their full potential.
In a release issued by the bank, it said Absa Bank Ghana LTD has always been committed to the growth and success of small and medium-sized businesses, recognising its power to transform the economy of the country.
It said the support programme was an exciting development that reflected the bank’s unwavering commitment to empowering and partnering SMEs as they navigate the challenges of today’s marketplace.
Initiative
The Executive Director – Retail and Business Banking at the bank, Kobla Nyaletey, said, “This milestone is a testament to our unwavering dedication to supporting SMEs businesses for growth and sustainability. Small businesses are the lifeblood of our economy, and we are committed to providing them with the financial support and resources they need to succeed and thrive.”
He said SMEs played an essential role in the economic vitality of communities, creating jobs and fostering innovation.
In spite of that, however, Nyaletey said accessing the necessary capital to sustain and expand these enterprises can be a significant challenge.
He explained that the programme was one of the most compelling stories of hope and possibility in a world that was grappling with uncertainty and volatility.
Providing solutions
Absa Bank Ghana has been on a journey over the last half a decade to design and offer a bouquet of solutions that truly and fully offer the help that SMEs need to survive and thrive. It’s the bank’s way of empowering our SMEs tomorrow, one story at a time,” it said.