Five Ghanaian financial service providers have officially launched their newly developed financial products as part of efforts to reduce Micro Small Medium Enterprises’ (MSMEs) inability to access financial services in the country.
The products by the financial service providers include: Madwuma Ntoboa Savings Plan and Nkosuo Bosea Loan Solution by Letshego Savings and Loans; Live Beta Savings Product and the Instant Business Loan by Access Bank Ghana; Group Loan and the Individual Loan by Sinapi Aba Savings and Loans; Mechanics Internal Risk Policy and Personal Accident Policy by GLICO General Insurance Company; SME Assured Plan by Allianz Life Insurance Ghana.
The event provided financial service providers, regulators, and customers the chance to learn more about the benefits of the new products and discuss how to further improve MSMEs’ access to financial services.
The launch which was themed: ‘Innovative Financial Products to Reduce the MSME Financing Gap’, was under the auspices of the German Cooperation through the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ), GmbH and in collaboration with AFC Agriculture & Finance Consultants. Representatives from the sector associations, the Ministry of Finance, the National Insurance Commission, the Bank of Ghana, and the Ghana Microfinance Institutions Network, were also present, given their role as regulators.
Speaking at the launch, Head of the Programme for Sustainable Economic Development at GiZ-Ghana, Detlev Axel Jahn, noted that currently, they are working with three MSME associations – Ghana National Tailors and Dressmakers Association, Ghana National Association of Garages and Association for Small Scale Industries (ASSI).
He then emphasised that the key role MSMEs play in the country’s economy cannot be overlooked, hence, their support to get them financing to enable them expand their business to create more employment.
“GIZ-Ghana, has been supporting the financial sector since 2008 and much of its effort has been on the promotion of financial services delivery to individuals and MSMEs. GIZ is happy to support this because MSMEs are considered as efficient and prolific job creators, the seeds of big businesses and the fuel of national economic engines,” he said.
The Senior Project Manager of AFC, Oliver Schmidt, on his part, explained their role in the project.
“AFC is proud to be the implementing partner of this exciting project. Over the last one and a half years, we established very good working relationships with five partner Financial Service Providers (FSP)s and three MSME sector associations. We brought these partners together to jointly develop lending and insurance products that are tailored to the needs of the MSMEs and, at the same time, are good business for the FSPs. We see here, a sustainable way of improving access to finance for the MSMEs in Ghana, which will prevail beyond the duration of the project,” he assured.
