Business News Thu, 6 May 2010

Rural Enterprises Project rolls out two credit systems

Saltpond (C/R), May 6, GNA - Mr Nelie Arkaah, Mfantseman Municipal Co-ordinator of the Rural Enterprises Project

(REP), said the project has roll out two credit systems to support entrepreneurs to enhance production. Addressing a meeting of small scale enterprises in Saltpond, Mr Arkaah listed the interventions as Credit Line and

Rural Enterprise Development Fund. He said under the credit Line, an entrepreneur had to save 10 per cent of the total cost of machinery, and then apply

to a bank for a 60 per cent loan, which would be boosted with additional 30 per cent matching grant from the Business

Advisory Centre of the REP. Mr Arkaah said government had restored the Rural Enterprises Development Fund, which was withdrawn some years

back due to low recovery of loans. He said under the facility, short-term loans would be paid back in 18 months while medium term credits would be


refunded in 36 months. Mr Arkaah said the REP had identified lack of capacity building as the bane of none performance of the private sector

and had therefore intensified training programmes to address it. He announced that the Municipal Assembly in collaboration with the Decent Work of the International Labour

Organisation had set up a co-operative credit union in the area to save the people from exploitation by unscrupulous

people who had established savings services (Susu) among the rural folks. Mr Arkaah said some of the susu service providers often bolt with moneys they collect hence the need to introduce

the credit union concept to the public.

Source: GNA