Small businesses and startups in Ghana have a new succor, courtesy of the government of Ghana. President Akufo-Addo has launched the GH¢1 billion($172 million) Coronavirus Alleviation Programme (CAP) business support scheme intended to support small and medium-scale enterprises (SMEs) impacted by the novel coronavirus (COVID-19) in the country.
“This highlights the important role MSMEs play in the growth and development of our economy, necessitating the special attention of Government,” Nana Akufo-Addo said at the launch of the programme t Jubilee House, the seat of the nation’s presidency.
Here Is What You Need To Know
- Out of the 1.2 billion cedis earmarked for this Programme, GH¢600 million will be disbursed as soft loans to MSMEs, with up to a one-year moratorium and a two-year repayment period. The rate of interest on government’s six hundred million cedi (GH¢600 million) facility is three percent (3%).
- Additionally, selected participating banks will provide negotiated counterpart funding to the tune of GH¢400 million, making, in all, GH¢1 billion for disbursement under this Business Support Scheme, with the entire scheme set to attract some 180,000 beneficiaries across the country.
- The SMEs sector, according to the University of Ghana study in 2015, contribute about 70 per cent to Ghana’s Gross Domestic Product (GDP), and account for about 92 per cent of businesses in the country.
Who Qualifies To Receive Funding?
- According to Akufo-Addo, the beneficiary sectors include agri and agro-businesses; manufacturing; water and sanitation; tourism and hospitality; education; food and beverages; technology; transportation; commerce and trade; healthcare and pharmaceuticals; and textiles and garments.
- The beneficiaries must be either self-employed, sole proprietors, or engaged in a limited liability, partnership, or joint venture arrangement.
- A total of ninety-nine (99) employees is the limit of employment for any qualifying enterprise.
- The qualifying enterprise is encouraged to belong to a trade association or group, and be registered with Ghana’s National Board for Small Scale Industries (NBSSI).
- The application process starts today, 20th May, and ends on Saturday, 20th June.
Read also: Small Businesses In Nigeria Get New Palliatives From The Nigerian Govt
Where To Go To For The Funding
- According to Ghana’s president, generally application forms have been made available online on the website of NBSSI, which is www.nbssi.gov.gh.
- Smaller enterprises can however access the funds from the Adom Micro Loans, and larger ones from the Anidasuo Soft Loan, according to him.
- Further enquiries may also be made across several platforms including nbssi.gov.gh/capsupport; mobile number platform (USSD) *718*555#; Call Centre Helpline: applicants can also call the CAP Business Call Centre on 0302 477 777; email address capsupport@nbssi.gov.gh; or visit the nearest NBSSI Business Advisory Centre for assistance with their applications.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.