Accra: The United Nations Capital Development Fund (UNCDF) and FIDO Microcredits Limited have commenced the second phase of their partnership aimed at expanding access to innovative digital financial services for micro, small, and medium-sized enterprises (MSMEs) in Ghana, with a particular focus on businesses led by women and young people.
According to Ghana News Agency, the partnership is part of a joint programme implemented by UNCDF, the United Nations Development Programme (UNDP), and the United Nations Conference on Trade and Development (UNCTAD), in collaboration with the Ministry of Trade, Agribusiness and Industry, under the leadership of the UN Resident Coordinator. The programme is funded by the Joint Sustainable Development Goals (SDG) Fund and seeks to support digital transformation and financial inclusion for MSMEs.
The Phase One intervention focused on leveraging digital ecosystems to increase MSME productivity, targeting youth and women-led MSMEs in Ghana. The project received a US$30,000 grant to support deep research and prototype solution development, engaging 470 MSMEs directly during field research in the Western, Ashanti, and Northern regions. It assessed the financial behaviors and needs of these businesses, identifying gaps in their access to digital financial services.
Under Phase Two, UNCDF is providing FIDO with a US$200,000 grant to scale its interventions, with an expectation to catalyse US$1 million in loans and savings. Maame Yaa Owusu-Amoah, Technical Specialist, Digital Finance and Ecosystem at UNCDF, highlighted the organization's role in increasing access to digital financial services and commended FIDO's performance during the pilot phase.
Owusu-Amoah explained that the grant arrangement reflects a leverage responsibility of one to four, aiming for a significant catalysing effect. She emphasized the importance of reaching underserved communities, particularly those led by women and young people.
Philip Twum, Head of Business Development at FIDO, noted the success of Phase One in meeting its scaling target, with 1,988 youth loans disbursed totaling GHS494,760. The second phase aims to expand these efforts, ensuring financial services reach those who need them most in Ghana.