Project Administration and External Facilities

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Project Administration and External Facilities

Project Administration and External Facilities

Bank of Ghana assists project sponsors, institutions, managers and teams by providing a framework for them to operate within.

Following the successful implementation of the Project named “Ghana Private Sector Development Fund”, financed by the Italian Government in 2004 for a total amount of 11,000,000 Euro, the Italian Ministry for Foreign Affairs (MAE-DGCS) approved in December 2007 additional financial resources of 22,000,000 Euro (approximately 45 million GHC) in order to continue to support the effort of the Government of the Republic of Ghana to promote private sector development.

Please visit the GPSDF Website to learn and benefit from this thriving project. 

The Support Programme for Enterprise Empowerment and Development (SPEED) fund loans set up to provide capital to Private Small and micro Enterprises in Ghana.The fund grants loans of up to 60 months at market Conditions through Participatory Financial Institutions.
Eligible Enterprises Supported by the project include:

  • Production
  • Processing
  • Services
Participating Financial Institutions include:
  • Unibank
  • Leaspatric Ghana Limited
  • Pro Credit Savings & Loans Co. Ltd
  • CAL Bank
  • Ahantaman Rural Bank Ltd 
  • Atwima Kwanwoma Rural Bank Ltd
  • Kakum Rural bank Ltd.
The Project is currently supported by the Governments of:
  • Ghana
  • Germany
  • Denmark

The Japanese Non-Project Type Grants have been set up to support the economic and structural adjustment efforts of the Government of Ghana. This fund is to promote the expansion of Small and Medium Enterprises in Ghana through the importation of Japanese capital goods.
PARTICIPATING FINANCIAL INSTITUTIONS INCLUDE:

  1. First Atlantic Merchant Bank of Ghana
  2. Amalgamated Bank
  3. National Investment Bank
  4. Ghana Commercial Bank
  5. Barclays Bank Ghana Ltd.
  6. Standard Charted Bank.
The project is currently supported by the Japanese Government and applications vetted by Ministry of Finance (MOF) and Crown Agents.

Sectors eligible for considerations are:
  1. Manufacturing
  2. Services
  3. Production

The Government of Ghana in collaboration with the International Development Association (IDA) initiated the project to promote non-traditional exports by making export credits available through the banking systems to non-traditional exporters.There are 2 types of facilities under this scheme: 

  • Short term credits in foreign exchange or cedis through participating banks: Loans granted under this must be repaid within 360 days.
  • Term Loan facility: Loans under this are medium term and are repayable over 5 years with up to a year’s moratorium.           

Eligibility Criteria 

Ownership – applicants business must be at least 51% privately owned and the public sector must not be the largest single shareholder. 

Export Activity:
 
Only businesses exporting commodities other than gold, diamond, cocoa electricity or raw timber are to apply for funds. 

NTEs Contribution 

Enterprise to maintain a total debt of equity ratio of not more than 4.1. 

Obligations of NTEs Prospective beneficiaries to support applications with confirmed purchase order. 

Participating Banks

  1. Agricultural Development Bank
  2. Barclays Bank
  3. Cal Bank
  4. Ecobank
  5. First Atlantic Merchant Bank
  6. Ghana Commercial Bank
  7. National Investment Bank
  8. Prudential Bank Ltd
  9. SG-SSB Limited
  10. Standard Charted bank
  11. The Trust bank
  12. International Commercial Bank

OBJECTIVE: 

As part of poverty alleviation interventions, Government of Ghana (GOG) took various loans from the International Fund for Agricultural Development (IFAD) to estatablish various projects with a view to support micro/small enterprises in Ghana. The projects include: 

 

  • Smallholder credit, Input Supply & Marketing Project (SCIMP)
  • Rural Enterprises Project (REP)
  • Upper West Agricultural Development Project (UWADEP)
  • Upper East Land conservation & Rehabilitation Project (LACOSREP) 


SECTORS COVERED 
Generally the Projects cover short-term loans of up to 1 year in the following areas:

  • Services
  • Marketing
  • Cottage Industries
  • Agro-processing
  • Traditional Craft etc 


LOANS 
Loan applications are made to the project coordinator through the Participating Financial Institutions (PFI) which include:

  • Rural Banks
  • Commercial Banks
  • Micro Finance Institutions etc. 

On behalf of Minister of Finance, BOG disburses funds to PFIs based on advice from Project coordinators of the various projects.

FUNDING: 

In December 2004 the Government of Belgium signed an agreement for financial assistance in the form of interest-free loan of Euros1.32m to bring the total project fund to Euros2.65. 


PURPOSE & CONDITIONS 

The facility is to be used exclusively by Govt. of Ghana for: 

  • Purchase of Belgium capital goods/industrial equipment
  • Services 
  • GOG to pay 20 equal annual installments to National bank of Belgium on 31st December each year with effect from 31st December 2004. 
  • BOG appointed as agent of Ghana to administer fund.