IFC and Access Bank Partner to Support Access to Finance for Small Businesses in Ghana

Accra, Ghana, September 12, 2024 — To support economic activity and job creation in Ghana, IFC today announced a partnership with Access Bank to increase access to finance for small businesses in the country, with a portion of the funding specifically dedicated to women entrepreneurs.

Under the partnership with Access Bank, IFC will invest up to $10 million local currency equivalent in an unfunded risk sharing facility (RSF) to increase lending to small and medium-sized enterprises (SMEs) in Ghana, including those in the agriculture, health, education, and green sectors, supporting waste reduction, energy saving, and sustainable building practices.

The RSF will provide a 50 percent guarantee on a portfolio of eligible loans to SMEs of up to $20 million local currency Ghanaian Cedi equivalent, eliminating the risk of currency fluctuations. At least 25 percent of the facility will support women-owned SMEs (WSMEs).

The RSF is processed under IFC's Small Loan Guarantee Program (SLGP), a program supported by the European Fund for Sustainable Development (EFSD) as part of the EU's Global Gateway strategy. The aim of the program is to de-risk and scale up financing for SMEs in Ghana and other eligible countries to enhance financial inclusion, job creation, and bridge the SME finance gap in emerging economies.

IFC will also provide advisory support to help Access Bank strengthen its capacity to lend to SMEs and help them enhance their financial and business management skills.

"At Access Bank, we believe that empowering micro, small, and medium enterprises is crucial to promoting economic growth and development," said Olumide Olatunji, Managing Director of Access Bank Ghana. "Our partnership with IFC is a major step towards enhancing financial access for these businesses, while giving them the financial push to thrive and contribute meaningfully to the country's economy."

IFC's support will help Access Bank Ghana increase its reach to key segments that remain traditionally underserved by financial institutions, with the aim of tripling the bank's WSME loan portfolio to $60 million by 2028. SMEs represent the vast majority of businesses in Ghana and are an important source of job creation.

"IFC's commitment to supporting SMEs with local currency funding reflects our dedication to driving economic growth and job creation in Ghana," said Kyle Kelhofer, IFC Senior Country Manager for Ghana. "With both financial and advisory support, IFC is empowering Ghana's smaller businesses and fostering a more inclusive and resilient economy."

Although financial inclusion has improved in sub-Saharan Africa in recent years, small and medium-sized businesses still identify access to finance as a key constraint. According to the Global Findex Database,  the credit gap for women-owned SMEs in Ghana was estimated at $213 million in 2021.

In the last decade, IFC has provided close to $2 billion in financing and advisory services in the Ghanaian economy, investing in key sectors such as healthcare, energy, agribusiness, financial services, infrastructure, manufacturing, retail, education, and tourism.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions, and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

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About Access Bank

Access Bank (Ghana) Plc is a leading full-service universal bank offering banking services to Retail, Corporate, Commercial, and Institutional clients. Operating from more than 700 branches and service outlets in 22 countries in Africa and the rest of the world including the UAE, UK, Hong Kong, and France along with three representative offices in China, India, and Lebanon, Access Bank is committed to setting standards for sustainable business practices that unleash the talents of employees, deliver superior value to customers, and provide innovative solutions for the markets and communities it serves. The Bank is dedicated to empowering small and medium-sized enterprises (SMEs) through its profound understanding of customer needs and its unwavering commitment to supporting business growth. With over 170,000 SMEs supported to date, Access Bank embodies its mantra, "We Love SMEs," by continuously enhancing services and fostering business development.

About the European Fund for Sustainable Development

The European Fund for Sustainable Development Plus (EFSD+) is one of Global Gateway's financing tools, promoting sustainable investments in the European Union's (EU) partner countries. The EFSD guarantees are offered on favorable, highly competitive conditions. They allow private investors to finance projects in more challenging markets, by assuming the risks of more unstable environments while avoiding market distortions. Because the EFSD covers a share of the risks, the EU's development finance partners can match the EFSD guarantees with their own resources, which in turn will attract additional investors. The Small Loan Guarantee Program (SLGP) is supported by a pooled first loss guarantee from the European Union under the EFSD. SLGP provides SMEs with access to financial services as well as risk-sharing support to encourage financial institutions in partner countries to expand their SME lending portfolio, with a particular focus on the harder-to-reach smaller SMEs.

Disclaimer:

This document was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.