Cheap Capital: A Growth Opportunity for SMEs in Ghana
Cheap capital remains a key input for business to succeed. The relative stability of the economy has lowered the cost of capital and presents SMEs in Ghana with various options to explore to achieve growth.
There are diverse funding source and Biz 360 Support Ltd is equipped to assist you to grow your business with readily available cheap funding.
Government and Public Programs
SME Growth and Opportunity (GO) Programme- is a big initiative managed by Development Bank Ghana and Ghana Enterprises Agency (GEA) + Ghana EXIM Bank with an offer of as low as 9%-10% per annum for GHC150k-GHC2M. GhC1.2B committed
GEA + Ghana Exim Bank has GHC700M for SMEs. Small grants and loans up to 2 years at subsidized rate.
A variant focuses on women, youth and PWDs. High growth SMEs can access Growth Grant Programme under the World Bank GETP programs. Matching grants up to GH¢1.2M or $50k-$70k for SMEs with 2+ years, 51% Ghanaian ownership
MASLOC Loans– provide loan and affordable loan via district offices and subsidize interest rate
National Entrepreneurship and Innovation Programme (NEIP) offer cheap loan and grants especially for agriculture, tech and manufacturing.
YouStart Ghana – Grants + soft loans GH¢50k – GH¢400k for youth 18-35 with viable business
Commercial Bank and Institutions
Ghana EXIM Bank – Export finance, pre/post-shipment credit, up to $10M at low rates.
Banks like Fidelity, CBG, Ecobank, CalBank for long-term SME loans 5-7yrs at lower-than-market rates with options for PO financing and invoice discounting with less collateral.
Absa + Mastercard Foundation – Collateral-free loans at 10% p.a, up to 24 months, $200k max. Focus on women, youth, agribusiness, fintech
Rural Banks + Savings & Loans – Advans, Izwe, etc. gives up to GH¢1M secured loans up to 48 months.
Grants & donor funding
AfDB $103M grant and IFC $400M + AfDB $40-$45M – Supporting SME GO Programme via PFIs.
UNDP District Innovation Challenge – $70k grants to women/youth-led MSMEs, plus training.
Tony Elumelu Foundation, Africa’s Business Heroes – Prize/grant funding open to Ghanaians.
Susu, money lenders – Common for startups. Angel investors & VC – Oasis Capital,Ghana Angel Investor Network via Deal Source Africa.
Fintech lending – Fido, Carbon – quick, collateral-free digital loans for SMEs.
Quick tips to qualify–
51% Ghanaian ownership is required for most govt funds. Registration + records, business plan, financials + cashflow are key requirement. Priority on agric., manufacturing, ICT, green business
Biz 360 Support Ltd helps you access the funding mix that is appropriate for your business to achieve the leap you desire to dominate your sector. Book a call with us today!!!
