Accra: The Consolidated Bank Ghana Limited (CBG) and the Social Investment Fund (SIF) have signed an agreement to disburse US$5 million in financing to women, youth, and micro, small, and medium-sized enterprises (MSMEs). This initiative is part of the Ghana Women and Youth Empowerment, Employment and Social Cohesion Access to Finance Compact and aims to expand access to affordable finance, promote entrepreneurship, and create sustainable jobs among vulnerable groups across the country.
According to Ghana News Agency, this project seeks to improve access to finance, business development services, and financial literacy for women and youth-led enterprises. It is expected to create employment and contribute to economic growth across beneficiary communities. Dr Naomi Wolali Kwetey, Managing Director of CBG, highlighted that the partnership reflects the shared commitment of the two institutions to empowering women and young people through inclusive financial services.
The US$5 million facility, equivalent to about 55 million Ghana cedis, will be deployed over a 36-month period to support approximately 3,000 beneficiaries. The first tranche is expected to reach about 800 individuals and businesses. Dr Kwetey emphasized CBG's commitment to ensuring a transparent beneficiary selection process, sound credit assessments, timely disbursement of funds, and effective monitoring of beneficiaries to guarantee the success of the programme. Beneficiaries will also receive business development services and financial literacy training to strengthen their capacity to manage the financing responsibly and grow sustainable enterprises.
Mr Abass Adam Nurudeen, Chief Executive Officer of SIF, described the agreement as a significant milestone in the implementation of the programme's microcredit component. He expressed confidence in CBG's capacity to achieve the programme's objectives and ensure timely disbursement and recovery of the funds to support a revolving credit scheme. The broader microcredit programme is expected to provide access to finance for about 8,000 beneficiaries, particularly women and youth-led SMEs in the Northern, Central, and Eastern regions.
Mr Nurudeen noted that the intervention targets areas with high poverty and unemployment levels, especially in northern Ghana. The economic empowerment is expected to help address some of the drivers of fragility and enhance social cohesion. The initiative extends beyond access to credit to include training in bookkeeping, basic accounting, and enterprise management to improve business success prospects among beneficiaries. The programme will utilise group lending, input financing, and equipment financing mechanisms to ensure prudent use of resources and improve loan recovery rates.
The initiative complements government efforts to promote women's economic empowerment. Supporting women entrepreneurs is expected to enhance household welfare, access to education and healthcare, and broader community development. Women play a significant role in Ghana's MSME sector, accounting for a substantial share of owners in the informal economy, particularly in trade, agro-processing, and services. Despite their contribution to employment and household incomes, many women-led businesses face persistent challenges in accessing affordable credit, markets, technology, and business advisory services.
MSMEs, which constitute the backbone of Ghana's economy, continue to grapple with high borrowing costs, inadequate collateral, limited financial literacy, poor record-keeping practices, and restricted access to long-term capital, factors that constrain growth and business sustainability.