President Akufo-Addo, on Tuesday, launched the GH¢1 billion Coronavirus Alleviation Programme Business Support Scheme, which is being provided by Government and selected participating banks to micro, small and medium-scale businesses around the country.
He explained that the outbreak of the Coronavirus pandemic has had a devastating impact on all economies around the world, with reduced productivity, job losses, and steep decline in revenues for Government, businesses, households and individuals in Ghana.
Amongst the hardest hit in Ghana, according to the President, are micro, small and medium-scale enterprises (MSMEs), which account for 70% of the country’s gross domestic product, and represent some 92% of businesses.
”This amply highlights the important role MSMEs play in the growth and development of our economy, necessitating the special attention of Government. This provides the basis for my direction to the Minister for Finance to send to Parliament the Coronavirus Alleviation Programme (CAP), whose objective is to protect households and livelihoods, support micro, small, and medium-scale businesses, minimise job losses, and source additional funding for promotion of industries to shore up and expand industrial output for domestic consumption and exports.” said the President.
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%).
Over five thousand applicants have signed onto Ghana’s ¢1 billion Coronavirus Alleviation Programme Business Support Scheme, according to the National Board for Small Scale Industries (NBSSI).
The President urged beneficiaries to use the funds received for the intended purpose, so that the country can work to grow the economy once again. Smaller enterprises can access funds from the Adom Micro Loans, and larger ones from the Anidasuo Soft Loan. This whole Scheme is meant to engender compassion and hope, the pillars upon which the country will build a new post-COVID Ghana.