International Finance Corporation (IFC), a member of the World Bank Group, has announced a loan facility to Societe Generale Ghana Limited (SGGH) to support the bank’s reach and provision of services to thousands of Ghanaian Small and Medium Enterprises (SMEs).
A $50 million senior loan will support SGGH in its efforts to provide loans of up to five years to Ghanaian private enterprises and SMEs, which make up more than 90 per cent of businesses in Ghana, helping boost their business growth.
IFC Country Manager for Ghana, Ronke Ogunsulire, expressed her excitement over the partnership with the bank in helping businesses in the country.
“We are excited to work with SGGH and play a role in helping businesses in Ghana, protecting jobs, and encouraging growth, particularly during the Covid-19 pandemic.”
Commenting on the collaboration, Ouzzani Hakim, SGGH Managing Director elatedly noted that it will also help the bank realize and actively participate in the development of the economy.
“This partnership with IFC is resolutely positive and will allow SGGH to play its full role in active support of the Ghanaian economy and the private sector. Our commitment, through the Grow with Africa Programme of Societe Generale, aims to significantly increase our funding to SMEs in Africa and particularly in Ghana.”
Over the last decade, IFC has provided over $4 billion of financing and advisory services in Ghana for the agribusiness, education, energy, financial services, manufacturing, transport, tourism, and other sectors.
Among the beneficiaries of their benevolence in aiding and funding businesses, the bank on July 16, 2020 announced a $12 million loan to Rider Iron and Steel Ghana Limited.
This was to support the company’s construction of a steel manufacturing plant which will increase Ghana’s domestic steel production, creating thousands of direct and indirect jobs.
When complete in 2021, the factory will produce roughly 240,000 tons of steel products annually using mostly locally sourced scrap steel.
Also, the plant will increase Ghana’s current production by more than 75 per cent.
Additionally, the plant will create about 450 direct jobs and generate more than 13,000 indirect jobs in the value chain, mostly among individuals and micro enterprises engaged in scrap collection.
In a similar venture, the finance corporation announced a $5.2 million loan to Nyaho Medical Centre.
This was aimed at supporting the Ghanaian health care provider’s expansion outside Accra and the upgrade of its existing hospital so it can better serve its patients.
IFC’s loan, which comes as access to quality health services is more important than ever because of COVID-19, will help Nyaho establish primary and urgent care facilities in the cities of Tema, Takoradi, and Kumasi, and upgrade its main hospital in Ghana’s capital, Accra.
Dr. Elikem Tamaklo, Managing Director of Nyaho, said, “The partnership with IFC is very instrumental in achieving our mission of transforming lives of patients and inspiring hope for a better Africa”.
