Absa Bank has disbursed an impressive GHs100 million under its 10% SME loan programme, marking a significant milestone that demonstrates the bank’s longstanding commitment to empowering and driving the growth of SMEs in Ghana.
Kobla Nyaletey, Executive Director – Retail and Business Banking, at Absa Bank Ghana LTD, noted Absa Bank Ghana LTD has always been committed to the growth and success of small and medium-sized businesses, recognizing their power to transform the economy of the country.
Meanwhile, this support programme is an exciting development that reflects the bank’s unwavering commitment to empowering and partnering with SMEs as they navigate the challenges of today’s marketplace.
“We have disbursed GHS100 million under the Absa 10% SME loan. This milestone is a testament to our unwavering dedication to supporting SMEs businesses for growth and sustainability. Small businesses are the lifeblood of our economy, and we are committed to providing them with the financial support and resources they need to succeed and thrive.”Kobla Nyaletey
The initiative, which is in partnership with Mastercard Foundation, is a landmark financing programme from the Bank to help transform the landscape of small and medium-sized businesses (SMEs) with a lot of focus on women-owned businesses, young entrepreneurs, agribusinesses, and FinTechs in Ghana.
SMEs Play An Essential Role In The Economic Vitality
SMEs play an essential role in the economic vitality of our communities, creating jobs and fostering innovation. However, accessing the necessary capital to sustain and expand these enterprises can be a significant challenge.
The programme is one of the most compelling stories of hope and possibility in a world that is grappling with uncertainty and volatility. The initiative allows SMEs in scope of the programme to borrow up to GHS11 million from Absa Bank at a remarkably low rate of 10% p.a.
It also allows them to borrow up to GHs1 million without collateral as against the average commercial borrowing rates that have soared above 25% making it harder for businesses to thrive and achieve their full potential.
Absa Bank Ghana has been on a journey over the last half a decade to design and offer a bouquet of solutions that truly and fully offer the help that SMEs need to survive and thrive. It’s the bank’s way of empowering our SMEs tomorrow, one story at a time.
The Absa 10% SME loan is an initiative under which Absa Bank Ghana and its strategic partners will build the capacity of 5,000 Ghanaian small and medium-sized enterprises (SMEs) to help make them investor-ready by the year 2025. In addition, these SMEs will be supported over the next few years with loans – up to GH¢ 1 million with no collateral and between Gh¢1 million and 11 million with collateral – all at a fixed interest rate of 10 percent.
The “ABSA SME loan at 10%” initiative is therefore revolutionary, as it is designed to address the SME finance gap in many ways including by scaling up the volume of loans to SMEs; pricing these loans at an unbelievable 10 percent; requiring no collateral for loans of up to GH¢ 1 million; and supporting such borrowers with much-needed capacity building and business supporting services.