Govt to launch 50 million-dollar fund for SMEs

Half Assini (W/R), August 2, GNA - The Government will in August this year launch a 50 million-dollar fund to assist small and medium scale enterprises (SMEs).

The fund will replace the Poverty Alleviation Fund (PAF), which several beneficiaries have failed to re-pay, according to Mr. Stephen Asamoah-Boateng, Minister of Local Government, Rural Development and Environment.

He made the remarks at half Assini on Monday as part of his five-day working visit to selected districts of the Western Region. He visited Nzema East, Jomoro, Ahanta West, Wassa West and the Shama Ahanta East districts.

Mr. Asamoah-Boateng said the fund would grant loans to individuals and groups operating as SMEs in all parts of the country. He said in the Jomoro district alone, more than 620 million cedis of PAF granted in 1995 remained unpaid.

The minister reiterated that government funds are not freebies, neither are they meant to compensate party activists and urged people to re-pay moneys granted them to enable others to also benefit. Mr. Asamoah-Boateng said the SMEs fund would grant loans ranging five million to 100 million cedis.

Nana Kyeku Anyimiah IV, Presiding member of the Jomoro District Assembly, said the lack of power in some communities was hampering the establishment of SMEs in those areas.

He said under the Self Help Electrification Project (SHEP) IV, several communities had erected poles and wired their houses but the absence of electrical meters was hampering their efforts. He appealed to the minister top improve the staff situation at the assembly to improve their output.

Mr. Martin Ackah, District Chief Executive of Jomoro, said the assembly needed legal backing from the Local Government Ministry to arrest and prosecute environmental defaulters.

He said percentages of fines from such arrests should be released to the assemblies to augment their internally generated funds (IGF).