Startups and businesses in Ghana desirous of accessing the newly launched Coronavirus Alleviation Programme (CAP) business support may go ahead and do so, at no fee, says Ghana’s National Board for Small Industries (NBSSI). To this effect, they have been asked to exercise caution in dealing with persons who offer to register them on the scheme at a fee.
“The initial registration/application is totally free. However, an administrative or processing fee is deducted only when funds have been approved and credited to the applicant’s account,” the NBSSI said.
Here Is What You Need To Know
- Ghana ‘s National Board for Small Scale Industries (NBSSI), the fund manager, said although the registration for the Coronavirus Alleviation Programme was free, some unscrupulous individuals were charging applicants before registering them on the scheme.
- A statement issued by the board in Accra said some unsuspecting applicants had fallen victim to fraudsters who were charging registration and application fees.
- The statement said the facility came with an annual interest rate of three per cent, a one-year moratorium and a repayment term of between two and three years and administered to eligible businesses through some financial institutions and telecommunication companies.
“It is a life saver not just for the beneficiaries but for the nation as a whole. It is unprecedented in Ghana’s history, as it accounts for about 0.15 per cent of Gross Domestic Product (GDP) and 1.22 per cent of the projected tax revenue for 2020, oxygen for a nation gasping for breath from a Coronavirus pandemic that has hit the world hard and brought global economies to a standstill,” it said.
- It noted that with MSMEs accounting for 92 per cent of businesses and contributing to about 70 per cent of GDP, the effort to support them was justified because, “MSMEs are the pulse of the Ghanaian economy. It is these businesses that keep the lights on in Ghana.”
“The fund is a breath of fresh air and a resurgence of hope in an uncertain time. It is the panacea this nation so desperately needs to sail through these tumultuous times,” the statement said.
- The NBSSI said it had a proven track record in implementing similar interventions and had in the last three years, chalked many significant milestones such as the training of 65,000 youths and supporting several entrepreneurs.
Read also:South African Gaming Startup Carry1st Raises $2.5m To Become Africa’s First Super App Maker
“The hope is that this fund will benefit as many eligible businesses as possible, to ensure their survival, as well as that of households that depended on such businesses. There is no doubt that this relief programme is timely and most welcome,” it said.
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.