GHANA- Absa Bank Ghana has partnered with the Mastercard Foundation to invest more than GHS 1.1 billion (US$70.7 million) to support 5,700 SMEs in the country via the Absa Young African Works (AYAW) program.
Audrey Abakah, the Bank’s Director of SMEs, Agency Banking and Partnerships disclosed the information to local media during a field tour of SMEs that have benefitted from the AYAW Program.
The five-year partnership was formed with the intention of creating 50,000 jobs for the youth through providing entrepreneurship training and collateral-free business loans at an interest rate of 10%. According to Abakah, the partnership has already provided training for 5,700 SMEs.
She praised the partnership, reiterating it would have a direct net positive impact on the economy and employment prospects.
Abakah said, “It was at that level that we thought that we needed to do something about it because the SMEs are the engine of growth in this economy. So, if we are at a phase in our economy and these businesses are struggling, then something has to be done.”
Out of the GHS 1.1 billion (US$70.7 million) already invested, 50% has been directly funneled to SMEs in the agriculture sector. Abakah reiterated agribusiness has the greatest capacity to recruit young people across the value chain.
The field tour also included testimonials from beneficiaries of the Program, reinforcing the direct impact of the partnership on the efficiency of their operations, productivity and scalability as well as employment prospects.
A highlight of the tour was Mr. Eric Danquah, the General Manager of G Billy Farms Limited, a pineapple processing SME based in Nsawam. A beneficiary of the AYAW Program, Danquah revealed the support received from the Program helped to upscale production and increased staff from 17 to 70.
He also revealed the Program provided access to GHS 3.3 million (US$212,105).
Absa Bank reiterated its emphasis on empowering agricultural SMEs, which stems from the underlying need to strengthen Ghana’s export competitiveness and address food security issues.
In 2023, Ghana’s agricultural exports were valued at US$3 billion, a significant decline from the US$8 billion exported in the previous year, alluding to fluctuations in agricultural production. According to the World Food Program, 2 million people in Ghana are food insecure.
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