The Development Bank Ghana (DBG) has partnered with Sinapi Aba Savings and Loans Limited to enhance lending to micro, small and medium enterprises (MSMEs) to spur growth. Under the partnership, DBG will support Sinapi Aba Savings and Limited with a long-term funding of GHc15 million to meet the financial needs of its customers. DBG, which began operations in June 2022, has entered strategic alliances with key Participation Financial Institutions (PFI), including universal banks, to be able to support the MSMEs sector. It is the first time that DBG has onboarded a Savings and Loans company as a PFI. The partnership would afford DBG the opportunity to tap into Sinapi Aba’s network of 44 branches located in the country’s 14 of the 16 regions, reaching 65 percent of customers in the rural areas and support with much-needed long-term capital to bring about business growth and expansion. Sinapi Aba, on the other hand, will receive wholesale capital which it will on-lend to its base of MSME customers, the majority of whom are in the rural areas as patient capital. Highlighting the relevance of the deal, Mr K. Duker, Chief Executive Officer (CEO) of DBG, said the partnership would allow DBG to reach an untapped target group, ‘which are the grassroots businesses who are also a vital component of the whole MSME sector.’ ‘Today marks a significant milestone in our shared journey towards economic development and empowerment. Through a loan facility of 15 million cedis, we are set to make a transformative impact on various sectors including education, agriculture, health, and manufacturing,’he said. More than 150 MSMEs will benefit from the collaboration, with 50 of these being women-led businesses. Overall, 6,000 jobs are expected to be created, supporting 30 youth entrepreneurs, and indirectly benefiting an astounding 30,000 individuals. According to Mr Duker, the partnership would, among many other benefits, bring about enhanced access to financial support to local businesses, business growth opportunities, capacity building, and preservation of livelihood especially among the lower-income strata communities. He said in the current difficult macroeconomic environment, it was important for DBG to step in to support businesses to build vibrant and sustainable private sector businesses. Mr Duker said the mandate of DBG was to help build a thriving and strong private sector by providing them with long-term capital. In his remarks, Mr Anthony Gyasi Fosu, CEO of Sinapi Aba Savings and Loans, said the alliance with DBG opened a new door of offering long-term patient capital to the many local businesses, who desired facilities with longer time span to allow them to grow their businesses and return value to their stakeholders. ‘The acknowledgment by DBG of Sinapi Aba’s pivotal role in the noble mission of building lives through financial inclusion and empowerment stands as a profound endorsement of our enduring commitment spanning 29 years. This recognition underscores our capacity to broaden financial access across a more extensive market, augmenting our capacity to provide enhanced financial solutions.’ He said the company currently has a customer base of more than 500,000. Mr Fosu said Sinapi Aba was committed to providing innovative financial solutions and training to entrepreneurs in MSMEs in Ghana to improve their business and enhance income-generating opportunities for the poor to improve their standard of living and positively transform their lives. He said the company was focused on Agriculture, Business, Housing, and Education. DBG is a Development Finance Institution established by the government of Ghana to facilitate and strengthen long-term financing to Ghanaian businesses along with the delivery of appropriate non-financial services to strengthen the ecosystem in which businesses operate. The Bank ensures that sustainable and global best practices are applied across all of its operations. The Bank has so far disbursed GHC 731 million, with an impressive GHC 277 million allocated just in September. The target is to lend reach one billion cedis by year’s end.
Source: Ghana News Agency