Business News of 2014-06-01

Eight Ghanaian SMEs receive funding

Eight Ghanaian companies have benefited from an amount of €3.3 million that was part of a €22 million grant from the government of Italy, which was meant to establish a credit facility for Ghanaian entrepreneurs.

The government of Ghana, after receiving 11 million in 2004 for disbursement and for the establishment of the Ghana Private Sector Development Facility Project, had received an additional amount of €10 million in November 2013.

Out of the €10 million received in 2013, €3.3 million will be disbursed to eight companies including 21 C Construction Limited, Micklin Construction Limited, Gyanmen’s Enterprise, Queen of the Night Hotels Limited, Advance Car Care Limited, and Intravenous Infusion Limited.

The remaining amount will be disbursed later when other Small and Medium Enterprises have met the requirement, Haruna Iddrisu, Trade and Industries Minister said.

He said the private sector holds the key to the country’s economic growth and development, saying government is convinced that the potential of SMEs to stimulate such growth is huge as they presently contribute to over 80 percent of the country’s Gross Domestic Product.

He said, however, realisation of the full potential of this sector is hampered by significant challenges relating to the acquisition and application of technology, access to finance, logistic management and human resources capacity building.

He appealed to those who have benefitted from the facility to do everything possible to ensure they keep to the schedule of repayment and work with the team of experts managing the project.

This, he said, is the only way government can guarantee sustainability of the financing schemes and resolve them to benefit a lot more enterprises.

Laura Carpini, Italian Ambassador to Ghana, said her country is proud that Ghana has chosen it as a privileged partner for a highly sensitive sector like the promotion of private development through utilisation of the latest Italian technology in equipment and machinery.

“The support to SMEs is indeed germane to successfully ignite private sector development with the needed financial resources to boost the economy.”