The Government of Ghana has introduced a new loan scheme aimed at supporting women, young people, and persons with disabilities who operate micro, small, and medium-scale enterprises (MSMEs). This initiative, implemented under the Ghana Women and Youth Employment and Social Cohesion (GWYESCO) Programme, was recently launched in Bolgatanga in the Upper East Region. The programme is designed to address the financial challenges faced by women- and youth-led businesses.
The loan scheme has earmarked $50 million for women and youth-led enterprises, with an interest rate of 8%, significantly lower than the 25-30% charged by commercial banks. Beneficiaries will have a repayment period of 1-2 years, with a 3-month moratorium before repayment begins. This flexible repayment plan is intended to allow beneficiaries to invest in their businesses and generate income before starting repayment.
The programme targets women aged 18 and above, men between 18 and 35 years, and persons with disabilities. It focuses on the agribusiness value chain, including farming, aggregation, and related activities. Priority will be given to groups and Village Savings and Loans Associations, with group lending placing repayment responsibility on participating members.
The Social Investment Fund (SIF) is working with Apex Bank, Ghana Commercial Bank, and Consolidated Bank Ghana to facilitate the lending process. Beyond providing credit, the programme will offer beneficiaries business development training, financial literacy support, and business-to-business linkages to improve their financial management, marketing, and business operations.
According to Lawyer Abass-Adams Nurudeen, CEO of the Social Investment Fund, the initiative is not just about providing loans but also equipping beneficiaries with the knowledge and skills needed to manage their businesses and repay the loans. The programme is one of President John Dramani Mahama's flagship initiatives to promote economic opportunities for women and young people, particularly in parts of northern Ghana.
The GWYESCO programme is being implemented in several regions, including the Upper East, Upper West, Northern, North East, Savannah, Central, and Eastern regions, under the supervision of the Ministry of Finance. The programme aims to address limited access to affordable credit and create an enabling environment for young people to establish sustainable businesses.
The Bolgatanga launch served as a beneficiary mobilisation exercise, with prospective beneficiaries' details being collected and registered through a digital platform. Beneficiaries will undergo loan appraisals and receive business development and financial literacy training from partner banks. The loans are not grants, and beneficiaries are required to repay them, with the involvement of financial institutions promoting accountability and ensuring the scheme's sustainability.
Key points
- The loan scheme offers flexible interest rates and repayment terms to support women, youth, and persons with disabilities operating MSMEs.
- The programme targets women aged 18 and above, men between 18 and 35 years, and persons with disabilities, focusing on the agribusiness value chain.
- Beneficiaries will have access to business development training, financial literacy support, and business-to-business linkages to improve their financial management and business operations.
