As Ghana prepares to launch the Ghana EXIM Bank next week, the Chief Executive Officer of the bank, Dr. Barfour Osei has refuted claims that the bank will compete with commercial banks in providing funds for Small and Medium Enterprises(SMEs).
According to him, the EXIM Bank will rather provide soft loans for commercial banks in the country for on lending to SMEs.
Speaking to Citi Business News, Dr. Barfour was optimistic the bank will significantly boost the SME sector since it will provide credits at relatively low interest rate.
“One of the major problems of the SME is long term fund financing, if you go to the commercial banks, they will give you a short term but most of these businesses need financing on a longer term, so all the financing that the EXIM Bank will be giving out will be going to be long term, and we are not going to compete with the commercial banks, we are going to fill those gaps that the commercial banks have left hanging,” he said.
“Businesses need support in so many different ways that the commercial banks don’t offer, so the EXIM will be providing all these support. You see people go to the commercial banks and say the interest rates are so high. The reason is that some of them don’t have what it takes to be able to get some. The EXIM bank will guarantee for the commercial banks so that they will b able to provide more resources for the SME,” he assured.
20 young entrepreneurs given loans
About 20 young graduate entrepreneurs seeking funds to expand their businesses were received a total of GHC2 million. The programme which was the maiden edition was organized in partnership with the University of Cape Coast (UCC), under the Graduate Enterprise Development Initiative awarded which saw the entrepreneurs receive GHC100,000 each.
This was after several weeks of coaching and mentorship. Twenty finalists were chosen from a vigorous screening process of 37 applicants.
The finalists were taken through a three-day training program to enhance their skills and develop their business concepts.
They submitted a refined business plan and upon further coaching, mentoring and pitching the 20 finalists were chosen for the awards ceremony.
The beneficiaries
Those awarded are Juga Farms, Vegerfresh Farms Limited, Titann Ventures, Yarda Trust Company Limited, Sule Yahaya Enterprise, Modern Grasscutter Company Limited, Nawubil Limited, Nouveau Foods Ghana Limited, and E90 Ghana.
Also included are PK Farms, Premor Limited, Sparkxx Foods and Beverages Limited, Sustanable Agro Limited, Isshad Plus Enterprise, Boasah Agricultural Center, Odera Ventures and Unique Quality Product Enterprise and DelChris Ventures.
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