By Elizabeth PUNSU, Kumasi
In a bold move to support the growth of Micro and Small Medium Enterprises (MSMEs), Amenfiman Rural Bank has formally announced a groundbreaking GH₵500 million in collateral-free loans.
The bank aims to extend this support to approximately 25,000 MSMEs especially small and micro businesses.
The initiative, known as the AMERB MSME Donkomi Promotion, aims to alleviate financial barriers for small business owners, particularly targeting those who lack traditional collateral as it has a low interest rate of 2.5 percent per month.
The announcement was made by Amenfiman Rural Bank’s Chief Executive Officer (CEO), Dr. Alexander Asmah, at the launch of AMERB MSME Donkomi Promotion in Kumasi.
Dr. Asmah, mentioned that this initiative came about after the bank had surpassed its GH₵1 billion deposit target six months ahead of schedule. The impressive milestone was achieved through a concerted effort to onboard new customers and mobilise funds from existing loyal clients.
He emphasised that Amenfiman Rural Bank has been actively involved in supporting micro, small, and medium-sized enterprises (MSMEs) and farmers over the years. Therefore, with such liquidity at hand it is only prudent to re-invest in its customers and small businesses in the country to ensure the economy grows.
According to Dr. Asmah, the bank’s focus aligns with recent government initiatives aimed at fostering economic recovery and growth.
The Ministry of Finance and Development Bank Ghana (DBG) have launched programs such as SME Growth & Opportunity Proramme, and MSMES Innovate and Grow (MIG) Fund respectively to enhance funding and development opportunities for MSMEs, and Amenfiman Bank is one of the selected rural banks approved by DBG to participate.
One of the core challenges faced by micro and small business owners in Ghana is the difficulty in accessing loans due to stringent collateral requirements. To address this issue, Amenfiman Bank’s AMERB MSME Donkomi Promotion will provide unsecured loans of up to GH₵400,000. The innovative program will allow business owners to obtain credit without the need for traditional collateral such as landed property.
“Many Ghanaians, particularly women, want to work and grow their businesses but struggle with accessing funding due to collateral constraints. We are breaking down these barriers by offering unsecured lending, which will significantly ease the financial burden on small business owners,” Dr. Asmah mentioned.
The AMERB MSME Donkomi Promotion is designed to support both micro and small businesses, with a particular focus on empowering women and youth-led enterprises. Beneficiaries of the program will receive daily visits from Amenfiman Rural Bank’s sales executives, who will collect loan repayments on a daily basis. Businesses will be required to contribute at least 20% of their own capital in addition to the bank’s loan, ensuring they have a vested interest in their growth and success.
Dr. Asmah indicated that the vision for this funding is not just providing capital; but building a framework for sustainable growth and financial empowerment. With a goal to see these businesses flourish and contribute to a thriving economy.
In addition to this initiative, Amenfiman Bank is collaborating with the Mastercard Foundation to secure additional funding aimed at further supporting women and youth-led businesses.
As Amenfiman Rural Bank continues to pave the way for innovative financial solutions, its latest initiative marks a significant step in enhancing access to capital for the country’s vibrant small business sector.
Some business owners who were at the launch took turns to praise the bank for their financial support over the years and also welcome this initiative saying, it will go a long way to help small businesses in the country.
Vice President, Ashanti Regional chapter, Ghana Union of Traders Association, Nana Kwame Amoah Nyame, after welcoming the initiative, pleaded with Amenfiman Rural Bank leadership to give them good interest rates on the loans to enable quick and easy repayment.
