UK Investment Fuels Growth for Ghana’s SMEs
British International Investment (BII) has extended a US$20 million loan facility to First National Bank Ghana (FNBG) to enhance financial access for micro, small, and medium-sized enterprises (MSMEs) in Ghana. This strategic partnership aims to bolster a vital sector of the Ghanaian economy, which is pivotal for job creation and economic growth.
Support for MSMEs
During an agreement signing ceremony in Accra, FNBG Chief Executive Officer Warren Adams emphasised that this five-year loan will empower the bank to increase its support for MSMEs, which account for over 90 per cent of all businesses in Ghana. These businesses contribute approximately 60 per cent of the country’s GDP and provide 80 per cent of employment opportunities.
We are pleased to secure this US$20 million facility from British International Investment, which will enable us to extend much-needed financing to MSMEs. It demonstrates our commitment to helping these businesses that are vital to Ghana’s economic growth.
Challenges and Opportunities
Despite their significance, MSMEs face considerable hurdles in securing long-term financing. The new funding will allow First National Bank to offer more term loans and working capital solutions to a wider range of small enterprises, especially those looking to recover and expand amidst economic pressures.
This facility comes at an opportune time as we seek to deepen our support for Ghana’s MSMEs. Our ambition is to provide real solutions, both financial and advisory, for entrepreneurs and small business owners who are key to economic development.
Strengthening Bilateral Relations
H.E. Dr Christian Rogg, the British High Commissioner, underscored the importance of this initiative, describing it as a significant milestone that reflects the robust UK-Ghana partnership. He stated that by facilitating loans and investments for small businesses, the BII is not only fostering innovation but also contributing to job creation and sustainable growth.
Today marks another proud milestone and highlights the strength of the UK-Ghana partnership. Together, we are delivering shared prosperity for both our nations.
Commitment to Sustainable Development
Chris Chijiutomi, Managing Director and Head of Africa at BII, reiterated the organisation’s commitment to supporting Ghana’s MSMEs as key drivers of economic progress and innovation. He noted that this facility aims to unlock opportunities for businesses and reinforce resilience while promoting sustainable development across the continent.
We are proud to partner with First National Bank Ghana to expand access to finance for Ghana’s MSMEs, as they are an essential driver of economic growth and innovation.
Background
MSMEs are often regarded as the backbone of not just Ghana’s economy but also many developing nations worldwide. Their growth is crucial, particularly in the context of post-pandemic recovery, making access to financing all the more essential as businesses seek to navigate ongoing economic challenges.
Source: official statements, news agencies, and public reports.
https://www.gov.uk/government/news/bii-backs-msmes-with-20m-loan-to-first-national-bank
