World Bank allocates $2.8m for Business Development Service Fund

Accra, Oct. 11, GNA - The World Bank has allocated $2.8 million to the Business Development Service Fund (BDS) this year. Out of the amount, $1.5 million would be released for the Micro, Small and Medium Enterprises (MSMEs) and $1.3 million for the Renewable Energy Sector under the Ghana Energy Development and Access Project (GEDAP).

A Memorandum of Understanding (MoU) for the disbursement of the funds was signed in Accra on Tuesday. The BDS Fund is a matching grant scheme which forms part of two large projects.

The MSME Project of the Ministry of Trade and Industry, is funded by the=A0World Bank Group and the main objectives of the BDS Fund are to provide technical assistance support for MSMEs to improve their business operation

The Ghana Energy Development and Access Project (GEDAP) seeks to assist government improve the operational efficiency of the electricity distribution system and increase the population's access to electricity; and transitioning Ghana to a low-carbon economy through the reduction of greenhouse gas emissions. Under the agreement, the World Bank would provide the funds, while Triodos Facet and Ibis-Ghana, both International Non-Profit Organisation would disburse the funds to beneficiary businesses. Mr Bernard Coes, a Management Consultant, who signed on behalf of the World Bank, said the fund would help alleviate poverty and help people in the lower income brackets to be part of the social and economic network and create employment opportunities in the country. He explained that the fund would provide matching grants to MSMEs undertake services that would make them more competitive both at home and abroad, reach more markets and enable them access loans from banks and other funding agencies.

"Any privately-owned-profit-making enterprise and non-profit-organizations with commercial orientation that operates in the country are eligible to benefit from the BDS fund. "Both locally owned and foreign-owned=96enterprises are equally eligible. Business and industry associations, consultancy organizations and training institutes are also eligible to apply," he added.

Mr Eric Agyare, Representative of Association of Ghanaian Industries (AGI) and the Chamber of Commerce, who signed on behalf of the associations, appealed to the BDS to provide assistance to enterprises that were struggling to survive, rather than already developed enterprises in the country.

"I will plead with all agents to ensure the funds reach the beneficiaries on time. Grants received after long periods after applying for them are of no significance and would have been better not granted at all," he added. 11 Oct. 11