Business News of 2014-04-13

‘Ghana has good investment climate’

The French private sector development lender, PROPARCO, has described Ghana as an impressive market and a good place to do business now and the future.

The Associate Managing Director of PROPARCO, Mrs Marie-Helene Loison, told the media during a visit to its headquarters in Paris, France , that the country had a conducive business climate for which PROPARCO was partnering local banks to deliver specialised financing.

For instance, PROPARCO has several long and medium-term loans with various financial institutions, mostly banks, to deliver mortgages and financing for small and medium enterprises (SMEs).

She said PROPARCO, which was particularly involved in the financial sector through its partnerships with various Ghanaian banks and non-banking financial institutions, had shown a strong commitment in the country with a portfolio of more than €60 million.

The managing director said the enabling investment environment had also encouraged PROPARCO to position itself as a partner for banks in Ghana, with focus on the private sector, especially the financing of small and medium-scale enterprises (SMEs), and added that PROPARCO was also active in infrastructure funding in Ghana.

Mrs Loison said her outfit had also been supporting the local banks through equity and debt instruments, as well as guarantees, and that its partners were the commercials, non banking and micro-finance institutions and insurance companies.

She, however, stressed the importance of the modernisation of utilities and the availability of reliable energy supply to sustain the economic growth of the country.

PROPARCO has a history of involvement in sub-Saharan Africa and has always supported growth in the region.

The private sector development financier invested 50 per cent of its annual funding, amounting to €350 million, in the private sector of sub-Saharan Africa in 2012.