FBN Bank Ghana has said it is all set to start its partnership with government to implement the YouStart initiative come March 2022.
Speaking in an interview with the B&FT at the grand opening of its newest branch at Atomic Junction-Accra, Chief Executive Officer for FBN Bank Ghana, Victor Yaw Asante, said the YouStart initiative is in line with the organisation’s objective to strategically position itself as the go-to partner for SMEs.
“In March this year, government will be launching the YouStart initiative that aims at supporting youth entrepreneurs, and we as a bank are partnering this initiative.
“Our focus and rationale for the location of this branch are also aligned with government’s agenda for this year, being that of the youth focus. We think it is the right time to also have branches that will deliver just serving the youth.
“We have some of our colleagues here who are involved in fashioning the initiative, and therefore we know exactly how this is going to be rolled out; and we believe this enclave will help us contribute our part of the programme government wants to roll out,” he said.
Mr. Asante reiterated that the YouStart scheme positions the FBN brand to deliver on its goals and also remain relevant in realisation of the country’s economic agenda.
“FBN is one of the financial institutions selected in the rolling-out of this programme; and for the FBN brand, we believe 2022 offers a great opportunity for delivering this agenda, and we will see a direct link to be able to improve our support to the economy in every significant way,” he said.
He added that as part of the measures put together to roll-out the YouStart initiative, FBN will not only be offering flexible payment loans but also direct advisory services to the youth on appropriate ways of disbursing funds.
“Our planned YouStart scheme will be offering support to young entrepreneurs to provide them a great start to business. Basically, the product is a specific one targetting young entrepreneurs who have special problems around attracting capital. So we have structured it such that we will be able to give them some small capital with flexible payment schedules; and, more importantly, give them advisory services on how to use capital.
“Sometimes it’s not that the product won’t sell or the offering is not a good offering, but it’s because of some practices around how people manage these plans that come to them; and that is what the FBN seeks to do,” he said.
He added that his outfit is poised to ensure that eligible candidates of the YouStart initiative are sensitised to handle their disbursement in ways that save them from diversion and misuse of funds.
“These and many more are the things we will be put in place in the core activity of delivering these services or products that they think they can work on but for which they need financial services,” he added.
YouStart
Government’s YouStart initiative, according to Finance Minister Ken Ofori-Attah, will have GH¢1billion budgetary support each year to catalyse an ecosystem to create 1 million jobs.
The initiative is said to support youth-led enterprises with district-level loans under GH¢10,000 after 2-3 months of training; soft loans of up to GH¢50,000 to help start-ups (in particular of young graduates and school leavers) and small businesses to expand; starter packs (soft loans tied to equipment acquisition) of up to GH¢50,000 for individuals and GH¢100,000 for associations/groups; and a standardised loan package of between GH¢100,000 to GH¢400,000 at concessional rates for SMEs through financial institutions.
