A US$5 million financing initiative has been launched to expand access to affordable credit for women, young people and Micro, Small and Medium Enterprises (MSMEs) while equipping beneficiaries with the skills needed to manage and grow their businesses.
The 36-month programme is being implemented under the Ghana Women and Youth Empowerment, Employment and Social Cohesion Access to Finance Compact, a partnership between Consolidated Bank Ghana Limited (CBG) and the Social Investment Fund (SIF).
The initiative is expected to reach about 3,000 beneficiaries, with an initial tranche targeting approximately 800 people. Financing will be provided through different models, including group lending, input financing and equipment financing, depending on the specific needs of beneficiaries.
At the signing ceremony in Accra, the Managing Director of CBG, Dr Naomi Wolali Kwetey, said the programme had been deliberately designed to go beyond simply providing credit.
She explained that access to finance without the requisite knowledge and business management skills could limit the ability of entrepreneurs to make productive use of loans and sustain their enterprises.
According to her, beneficiaries would therefore receive financial literacy and business development training to improve their capacity to manage finances, plan their businesses and utilise credit responsibly.
Dr Kwetey said CBG would also ensure that the selection of beneficiaries was transparent and that credit appraisal, disbursement and monitoring were conducted effectively to safeguard the objectives of the programme.
She noted that building the capacity of entrepreneurs would not only improve the performance of individual businesses but also create jobs and contribute to economic development in beneficiary communities.
The initiative comes at a time when several MSMEs continue to face difficulties arising from weak bookkeeping, inadequate accounting systems, poor financial management and limited business planning capacity.
Such challenges often make it difficult for small businesses to secure credit, manage borrowed funds, expand operations and meet repayment obligations.
The Chief Executive Officer of the SIF, Mr Abass Adam Nurudeen, described the training component as a critical element of the intervention.
He said beneficiaries needed to understand how to deploy borrowed funds productively before receiving credit.
Mr Nurudeen said the training would cover areas such as basic accounting, bookkeeping and enterprise management to strengthen the businesses of participants and improve their prospects for long-term sustainability.
He explained that the financing models would be adapted to the needs of different enterprises. While group lending would broaden access to credit, input and equipment financing would enable businesses to acquire essential productive resources.
Beyond the US$5 million programme, Mr Nurudeen said the broader microcredit initiative was expected to reach about 8,000 women and youth-led small and medium-sized enterprises, particularly in the Northern, Central and Eastern regions.
He said the focus on those areas was informed by concerns over poverty, unemployment and economic vulnerability, with the intervention expected to strengthen livelihoods and address some of the factors contributing to social fragility.
The programme reflects an increasing shift towards enterprise support models that combine financing with skills development, rather than relying solely on grants or credit.
By integrating capital with financial literacy and business development services, the partners hope to improve the ability of beneficiaries to manage their enterprises, create sustainable jobs and strengthen economic resilience.
Mr Nurudeen said empowering entrepreneurs with both financial resources and practical business skills would ultimately contribute to stronger livelihoods and greater social cohesion in beneficiary communities.
