The Executive Director of the National Board for Small Scale Industries (NBSSI), Mrs. Kosi Yankey-Ayeh has revealed the Nkosuo programme, has benefited over 12, 000 businesses.
In an engagement with the media, she pledged more funding to businesses and also ensure they are not in any dire straits.
“A lot of people thought that after elections we will stop but we have been giving out funding. It is still ongoing. We will continue to give out funding. We are trying as much as possible to make sure whatever resources we have are given to the beneficiaries under the Nkosuo fund.”
Additionally, she indicated her outfit has “also started working with the bigger financial institutions to be able to give the bigger funding as well”.
The Board in September reached over 200, 000 businesses which benefited from the disbursement of the stimulus package.
These businesses according to Mrs. Kosi Yankeh-Ayeh, received about 390 million Ghana Cedis from the GHC1billion COVID-19 fund to support their businesses.
“What was given to the about 200,000 people was GHC390 million…in every region and district, there’s a beneficiary from there. If you look at the information we received during the application, 80% were micro-businesses, which is characteristic of the Ghanaian economy. Some people have received as little as GHc500 based on the information they provided and some have received as much as GHc1, 5000″.
She further revealed that, no sector within the country heavily impacted by the pandemic has been exempted from the program.
As such, a lot more businesses stand to benefit from the package as her outfit isn’t quite done yet with the disbursement of funds.
In spite of the seeming stride in assisting businesses during the pandemic, The Dalex Finance CEO, Kenneth Thompson, during an exclusive interview with The Vaultz News, disclosed that the National Board for Small Scale Industries cannot manage the stimulus package.
Suggesting which outfit best fits the task, Mr. Thompson opined private financial institutions– as they have better risk management models, have experience and are knowledgeable about the business environment contrary to the dearth of expertise inherent in the NBSSI.
“What do they know, what risks have they ever taken; how much money have they lost?”
“Take the money away from NBSSI and give it to private financial institutions. Leverage government’s funds by getting the institutions to commit their own funds and then maybe we can have some hope that the program will be successful. Nobody can convince me that the NBSSI has better risk assessment ‘tools’ than a properly constituted rural bank, savings and Loans Company or a microfinance institution”.
Additionally, the Dalex Finance boss noted that the amount being disbursed by the Board to aid businesses who have suffered as a result of the pandemic will be ineffective in sustaining them.
In appraising the NBSSI disbursements of the stimulus packages to qualified applicants as a buffer for their businesses, he iterated that, “it is a good idea but it will have no effect because I think the amount is too small.”
