Mastercard Foundation, in partnership with Ghana’s National Board for Small Scale Industries (NBSSI), has announced the creation of an Emergency Program to support micro-, small-, and medium-sized enterprises (MSMEs) and startups in Ghana during the economic downturn caused by the COVID-19 pandemic.
“The effects of COVID-19 are multifaceted and unfolding rapidly. We expect that the prospects of young people in Ghana, and the rest of Africa, will be deeply impacted,” says Mastercard Foundation President and CEO Reeta Roy
Here Is All You Need To Know
- The Program, with an initial commitment of approximately GHC90 million from Mastercard Foundation and NBSSI, is in line with the government’s support for Ghanaian MSMEs and will receive additional investment from other donors and institutions.
Read also:Mastercard Foundation Invests $14 million Into Ghana ’s SMEs
The Program will focus on supporting the following MSMEs and startups:
- MSMEs who need support to survive the COVID-19 pandemic.
2. Businesses in growth sectors where the employment of young people, especially young women, will be negatively impacted as a result of business operation disruptions, supply chain challenges, liquidity shortages, declining sales and profits, and business closures.
3. Businesses providing services that will be in demand during the pandemic and that have the potential to grow and positively impact communities affected by COVID-19.
4. Businesses that will focus on digitization to support MSMEs.
- The creation of the NBSSI Mastercard Foundation Recovery and Resilience Program for MSMEs follows the Foundation’s recent announcement of its West, Central and Northern Regional office opening in Accra to drive its Young Africa Works strategy in the region.
- Young Africa Works, developed in consultation with young people, policymakers, educators, and entrepreneurs, is Mastercard Foundation’s strategy that aims to extend dignified work to 30 million young people in Africa, with 3 million in Ghana, 70 per cent of which will be young women, over the next 10 years.
Read also:MasterCard Launches Initiative to Provide 10 Million Ethiopian Youth With Jobs
“We will continue working with young people to better understand their needs, amplify their voices, and co-create solutions that will enable them to reach their full potential. We are also keenly considering what lessons we can glean during this time to better equip young people for a future in which work will be increasingly digital.”
How Startups May Apply To The Fund
- The NBSSI Mastercard Foundation Recovery and Resilience Program for MSMEs will provide financial assistance, in the form of grants and soft loans, via participating institutions — banks, microfinance, mobile lenders, NGOs and Business Development Services — to eligible, qualified micro-, small-, and medium-sized enterprises, both formal and informal.
- The amount and type of financial support provided will vary depending on the size of enterprise, their need and repayment capacity.
- Once participating institutions have been onboarded, NBSSI will put out a call to MSMEs and start-ups to apply for funding via a centralized web-based platform.
- Information will also be made available via NBSSI’s 178 Business Advisory Centers and 37 Business Resource Centers across the country.
The Executive Director of NBSSI, Kosi A. Yankey-Ayeh, stated that “MSMEs are always at the heart of the work of NBSSI. It was based on this that the MSME Emergency Program was conceived and set up, and it is the first of a series of interventions outlined to mitigate the impact of the COVID-19 pandemic on MSMEs.
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.
He could be contacted at udohrapulu@gmail.com