The Social Investment Fund (SIF) has launched a $50 million loan facility under the Ghana Women and Youth Employment and Social Cohesion Programme (GWYESCO), financed by the African Development Bank, aimed at removing longstanding barriers that have locked women- and youth-led micro, small and medium enterprises out of affordable formal credit.
Abass Nurudeen, Esq Chief Executive Officer of SIF, announced the scheme at the programme’s launch at the GNAT Hall in Bolgatanga. He said the facility directly confronts the high cost and restrictive terms that commercial lenders typically impose on these enterprises.
Commercial banks commonly charge 25–30 per cent interest, so a GH¢10,000 loan can attract roughly GH¢3,000 in interest over a repayment window of only six to twelve months. Under the new scheme, the interest rate drops to 8%, reducing the interest on the same GH¢10,000 loan to about GH¢800 while repayment periods extend to one or two years. Borrowers also receive a three-month moratorium, allowing them to deploy the capital and generate income before instalments begin.
Collateral requirements have been eased. An individual guarantor is acceptable, or a beneficiary may pledge an asset as self-guarantee. The programme places strong emphasis on group lending, including through Relief Savings and Loan Associations, so that liability is shared. Individual applicants will undergo a stress test.
Eligibility is deliberately inclusive: women aged 18 and above, men aged 18 to 35, and persons with disabilities. Priority is given to enterprises operating along the agribusiness value chain, farmers and other actors from production through processing and marketing. Beyond credit, beneficiaries will receive business development training, financial literacy support, and practical guidance on packaging, marketing and business-to-business linkages.
Implementation partners include ARB Apex Bank, Ghana Commercial Bank and Consolidated Bank Ghana. The scheme is concentrated in the five northern regions as well as the Central and Eastern regions, reflecting its design as an area-specific intervention under President John Dramani Mahama’s broader agenda to expand economic opportunity for women and youth.
By combining sharply lower pricing, longer tenors, flexible guarantees and structured capacity support, the facility seeks to convert a chronic access-to-finance constraint into a platform for enterprise growth, job creation and stronger social cohesion in the target regions.
By Gayheart Abraham
Source: Mybluewavesonline.Com/ Maurice Duncan / Bolgatanga
