The Ministry of Finance (MoF) has intimated that owing to the establishment of the Development Bank Ghana (DBG), the new Bank seeks to explore the possibility of sponsoring a digital platform for financing Micro, Small and Medium Enterprises (MSMEs).
According to a recent statement issued by the Ministry and published by the Bank of Ghana, this will follow after the Ministry of Finance receives financing from the World Bank towards the cost of the preparation of the Development Finance Project, which supports the establishment of the Development Bank, Ghana (DBG) and the design of its future products and services.
The Digital platform, according to the statement from the Ministry of Finance, can also help reduce information asymmetries and unlock private sector capital for MSMEs.
Additionally, the Development Bank Ghana (DBG) will provide wholesale lines of credit and Partial Credit Guarantees (PCGs) to eligible Participating Financial Institutions (PFIs) for ‘on-lending to MSMEs’, and support the development of a digital platform for MSME finance, among other activities, the Finance Ministry revealed.
Based on preliminary conceptualization, the Finance Ministry asserted that the proposed platform is expected to “offer missing services to MSMEs in Ghana, serve as an intermediary between the Ghanaian real and financial sector, and combine/facilitate various services to unlock MSME finance and support their growth and productivity”.
Giving further insight into the function of the digital platform, the Ministry of Finance disclosed that the services offered by the platform would leverage each other to achieve economies of scale, improve credit risk process, introduce innovation, and facilitate MSME access to financial services.
Highlighting the services to be considered in this study primarily for the digital platform, the Finance Ministry mentioned that this will include: “Accounts receivable finance; Electronic invoicing; and Cloud based accounting”.
The Finance Ministry further hinted that “while a digital platform can be privately owned and operated, there are many examples of markets that required a public sponsor to kick-start such platform.
“This can have a demonstration effect and encourage the private sector to develop alternative solutions”.
As such, the Ministry of Finance requests for Expressions of Interest (EOI) of eligible Consultancy Services Firm to indicate their interest in providing the Services for the design and feasibility study of the digital platform for MSME financein aid of the Ghana Development Finance Project.
“The Consultant will assist the MoF/DBG in establishing an effective and sustainable public sponsored digital platform (“the Platform”) that can increase access to finance to SMEs in Ghana.
“The selected Consultant will not be eligible to bid for the supply/design of the software solution for the Platform.
The shortlisting criteria according to the Finance Ministry comprises a minimum of 10 years of experience in the provision of consulting services, including to financial sector institutions; Track record in the provision of advice on the design/ establishment or restructuring of e-invoicing and receivables financing platforms, particularly in a similar country context; and Demonstrated international experience, including in Africa or in emerging economies.
Finally, the Ministry of Finance cautioned that a Consulting Firm will be selected in accordance with ‘Quality and Cost Based Selection Method set out in the Procurement Regulations,’ adding that the EOI must bear the title ‘Firm to design feasibility study of a digital platform for MSME finance,’ and must be delivered in a written form either “in person or by mail, or by e-mail by 5:00pm GMT on February 12, 2021”.
