SMEs access to credit in VR encouraging

Ho, March 21, GNA - Access to credit by Small and Medium Scale Enterprises)(SMEs) in the Volta Region has improved over the past two years.

The Ho Senior Regional Project Officer of the National Board of Small Scale Industries (NBSSI), Mr Ransford Kani who said this in an interview in Ho with the Ghana News Agency, said there was a progressive rise in the quantum of monies on offer, raising the prospects of a number of businesses in the region. He said his outfit had facilitated a number SMEs in the Municipality to access credit from the Micro and Small Loans Centre (MASLOC).

Mr Kani said some SMEs had as much as GH¢4,000 and GH¢5,000, a big improvement on the GH¢500 and GH¢400 they used to get. He dismissed arguments that SMEs were given only a quarter of their demands and said the allocation took into consideration business strength and ability to manage and pay back loans. Mr Paul Franklin Gbortsyo, Executive Director of Pagbo Kente Village in Ho said although he requested for GH¢20,000 he had only GH¢4,500. Mr Paul Drah of Paul Fashions Shop also said he expected GH¢14000 and only received GH¢4,000. He said he was therefore compelled to go to a commercial bank for more money at very high interest rate. Mr Drah, however, commended the NBSSI for facilitating credits from MASLOC for the SMEs, but appealed for the quantum to be increased.

Mr Frank Agbeve of KumFranky Company Limited suggested that instead of giving fiscal cash to loan applicants, MASLOC and NBSSI should consider purchasing equipment for them. He said that way entrepreneurs would not have the trouble of going to look for additional loans from banks as top-ups.