Recently, the International Finance
Corporation (IFC) announced a $60 million investment to support small and medium sized business with loans in Ghana and Seven other African Countries.
The announcement was made via a press realise to the Ghanian News Agency, the move was made to facilitate growth and job creation in the region, the funding according the press release will support Bank of Africa (BOA) Groups in loans to small & medium sized enterprises in Ghana, Burkina Faso, Mali, Niger, Senegal, Tanzania, Togo and Madagascar.
The Investment was Supported by IFC’s Women’s Opportunity Fund (WEOF), it will cover up to 50 per cent the risk with an amount equivalent to $120 million in loans to SMEs in these countries, including half of the expenses being allocated to women-run businesses.
The Regional Director IFC for Africa, Mr Oumar Seydi, stated that Expanding SME financing, especially in higher-risk markets, is an important pillar of IFC’s strategy for Africa.he also stated that the move will allow BOA to cater for more than 5,000 loans to underserved SMEs over the next five years, which could have a transformational impact on participating countries, including seven low income countries and five fragile and conflict affected countries.
According to official figures, in sub-Saharan Africa, where around 350 million new jobs will be needed over the next 20 years, SMEs account for 30-60 per cent of gross domestic product and 67 per cent of jobs.