Accra: The Government of Ghana is set to provide loans with interest rates ranging from eight to 12 percent to small and medium-sized enterprises (SMEs), particularly agribusinesses, to facilitate their expansion for export. The initiative aims to bolster the country's export capacity and enhance the competitiveness of its agribusiness sector on the international market.
According to Ghana News Agency, the SMEs On-lending facility will be managed collaboratively by the 24-Hour Economy Secretariat under the Office of the President, the Bank of Ghana, the Development Bank of Ghana, and several private financial institutions. This initiative is part of the 24-hour Economy Policy, a campaign promise by the National Democratic Congress (NDC) leading up to the 2024 general elections.
Dr. Ishmael Nii Amanor Dodoo, Head of Innovative Finance, Markets, and Partnerships at the 24-Hour Economy Secretariat, introduced the proposed facility during the media launch of the 2025 Horticulture Expo in Accra. He explained that the financing model is tailored to help agribusinesses and exporters manage forex fluctuations and remain competitive globally.
To access the SMEs On-lending facility, agribusinesses must be part of a recognized association, such as the Federation of Association of Ghanaian Exporters (FAGE). This requirement is intended to mitigate investment risks and ensure loan recovery and the facility's sustainability. Additionally, the facility will offer seed capital, extension services, and technical capacity-building opportunities for farmers to expand and enhance their products and services.
Dr. Dodoo emphasized that the initiative is a citizen-led effort to empower agricultural-based businesses and support economic growth. He highlighted the 24-Hour Economy Policy's focus on fostering private sector partnerships to unlock financial investments for agribusinesses, promote food sufficiency, and create job opportunities for Ghanaian youths.
The 24-hour Economy Policy aims to increase output, add value to raw materials, and boost productivity. Dr. Dodoo stressed the importance of addressing structural economic issues and enhancing value chains to enable Ghanaians to control the US$77 billion GDP and improve supply chain efficiency, particularly in sectors like the US$1.2 billion textile industry.
Mr. Davis Narh Korboe, President of the Federation of Association of Ghanaian Exporters, expressed the Association's commitment to surpassing a five-billion-dollar target for non-traditional exports. The upcoming second edition of the Horticulture Expo, scheduled for June 11 to 13 at the Accra International Conference Centre, is anticipated to draw over 400 exhibitors and 5,000 participants globally. The expo will facilitate business-to-business meetings, networking, and seminars, helping Ghanaian exporters connect with international markets and expand their businesses.
The event will also promote key commodities such as coconut products, mangoes, pineapples, sweet potatoes, onions, and chilies, encouraging exporters to adopt innovative business strategies and add value to their products to remain competitive on the global stage.
