Consolidated Bank Ghana Limited (CBG) and the Social Investment Fund (SIF) have signed an agreement to provide US$5 million in financing to women, youth and micro, small and medium-sized enterprises (MSMEs).
The financing is being provided under the Ghana Women and Youth Empowerment, Employment and Social Cohesion Access to Finance Compact, aimed at expanding access to affordable finance and promoting entrepreneurship and sustainable job creation.
The programme will also provide beneficiaries with business development services and financial literacy training to strengthen their capacity to manage financing and build sustainable enterprises.
Speaking at the signing ceremony in Accra, Dr Naomi Wolali Kwetey, Managing Director of CBG, said the partnership demonstrated the commitment of both institutions to empowering women and young people through inclusive financial services.
She said the US$5 million facility, equivalent to about GH¢55 million, would be deployed over 36 months to support approximately 3,000 beneficiaries, with the first tranche expected to benefit about 800 individuals and businesses.
Dr Kwetey said CBG would ensure a transparent beneficiary selection process, sound credit assessments, timely disbursement and effective monitoring to enhance the success of the programme.
She said beneficiaries would also receive business development support and financial literacy training to improve their ability to manage the financing responsibly and grow their enterprises.
“Today we open a pathway for thousands of Ghanaian women and young people to grow their businesses, create jobs and improve their livelihoods,” she said.
Dr Kwetey said CBG remained committed to delivering the objectives of the programme and ensuring that the financing translated into meaningful economic opportunities for beneficiaries.
Women account for a significant proportion of owners of businesses in Ghana’s informal economy, particularly in trade, agro-processing and services.
However, many women-led enterprises continue to face challenges in accessing affordable credit, markets, technology and business advisory services.
MSMEs, which form a major part of Ghana’s economy, also face constraints including high borrowing costs, inadequate collateral, limited financial literacy, weak record-keeping practices and restricted access to long-term capital.
Mr Abass Adam Nurudeen, Chief Executive Officer of SIF, described the agreement as a significant milestone in implementing the microcredit component of the programme.
He expressed confidence in CBG’s capacity to achieve the programme’s objectives, ensure timely disbursement and recover the funds to support a revolving credit scheme.
Mr Nurudeen said the broader microcredit programme was expected to provide financing to about 8,000 beneficiaries, particularly women and youth-led SMEs in the northern, central and eastern regions.
He said the intervention targeted communities with high levels of poverty and unemployment, particularly in northern Ghana, where economic empowerment could help address some drivers of fragility and strengthen social cohesion.
The SIF Chief Executive said the initiative went beyond access to credit, with beneficiaries receiving training in bookkeeping, basic accounting and enterprise management to improve their prospects for business success.
He said the programme would employ group lending, input financing and equipment financing mechanisms, depending on beneficiaries’ needs, to promote prudent use of resources and improve loan recovery.
Mr Nurudeen said the initiative complemented government efforts to promote women’s economic empowerment, adding that supporting women entrepreneurs could improve household welfare and access to education and healthcare while contributing to broader community development.
