Ghana and Netherlands to collaborate on financing SMEs

Tema, Feb. 22, GNA - The Ministry of Finance and Economic Planning in collaboration with the Netherlands Ministry of Foreign Affairs have initiated a programme to share financial risks facing companies in developing countries.

The Programme for Cooperation with Emerging Markets (PSOM) is a Dutch funded programme to finance pilot investment projects for long term investment and sustainable trade relations between Netherlands business community and Small and Medium Scale Enterprises (SMEs) in Ghana.

Mr Lawrence Attipoe, Portfolio Coordinator of the Netherlands Development Organization Ghana (SNV) announced this at a training programme to introduce members of the Association of Ghana Industries (AGI) to the programme at Tema.

Mr Attipoe explained that funds under the programme were made available to reduce the financial risks involved in the pilot phase of businesses.

He said a typical PSOM project involved a mixture of hardware supply and installation, knowledge transfer and project management. Mr Attipoe said the programme was initiated to encourage investment in selected developing countries including Ghana to contribute to poverty alleviation through employment creation, transfer of knowledge and technology, strengthening and diversifying the local private sector. On assistance to the SMEs Mr Attipoe said companies from less developed countries would receive 60 per cent of the total project cost with a maximum of 850,000 euros.

He said to access the two-year project; SMEs must submit proposals of an innovative project through their district AGI offices for evaluation before the funds would be provided.