The Chartered Institute of Bankers, Ghana (CIB Ghana), in collaboration with the Ghana Investment Support Programme (GhISP), has provided training to Small and Medium-sized Enterprises (SME) portfolio managers from banks and selected finance houses. This initiative aims to strengthen lending to small businesses, focusing on gender inclusion, climate risks, and cash-flow-based credit assessment. The training seeks to enhance the capacity of financial institutions to support SMEs effectively.
The training programme is designed to equip SME portfolio managers with the necessary skills and knowledge to assess creditworthiness and manage risks associated with lending to small businesses. By emphasizing gender inclusion, the programme aims to promote equal access to finance for women-led SMEs, which often face challenges in accessing credit. This initiative is expected to contribute to the growth and development of SMEs in Ghana.
Climate risks are also a critical component of the training, as SMEs are often vulnerable to climate-related shocks. By incorporating climate risk assessment into their lending practices, financial institutions can better manage their exposure to climate-related risks and support SMEs in building resilience. The programme's focus on cash-flow-based credit assessment is also expected to improve the accuracy of credit decisions and reduce the risk of default.
The partnership between CIB Ghana and GhISP reflects the growing recognition of the importance of supporting SMEs in Ghana. SMEs are a vital component of the country's economy, contributing significantly to employment and economic growth. However, they often face challenges in accessing finance, which can limit their growth potential. This training programme is an effort to address these challenges and promote inclusive and sustainable economic growth.
The training programme is also expected to have a positive impact on the banking sector in Ghana. By enhancing the capacity of SME portfolio managers, financial institutions can improve their lending practices and reduce the risk of default. This, in turn, can lead to increased confidence in the banking sector and improved access to finance for SMEs.
The initiative is part of a broader effort to promote economic growth and development in Ghana. The country's government has implemented various initiatives to support SMEs, including the creation of the Ghana Investment Support Programme (GhISP). This programme aims to promote investment and economic growth by providing support to SMEs and other businesses.
The collaboration between CIB Ghana and GhISP is a significant step towards promoting inclusive and sustainable economic growth in Ghana. By supporting SMEs and promoting equal access to finance, this initiative has the potential to make a positive impact on the country's economy and contribute to the achievement of the Sustainable Development Goals (SDGs).
Key points
- CIB Ghana and GhISP train SME portfolio managers on inclusive lending.
