Zenith Bank (Ghana) Limited, a leading integrated financial services provider, and African Guarantee Fund (AGF) have announced a strategic risk-sharing partnership aimed at expanding access to finance for Micro, Small and Medium Enterprises (MSMEs) in Ghana. We have a particular focus on green businesses and women-owned/led businesses.
Recognizing that most MSMEs, despite their valuable contribution to the economy, struggle to secure financing due to lack of collateral or credit history, this partnership aims to address the unique needs of these businesses. It unlocks a suite of financial products and services specifically designed to address and facilitate business growth and growth. success.
By providing a partial guarantee on loans issued by Zenith Bank Ghana, AGF will reduce risk for the Bank of Ghana, making it easier for MSMEs to qualify for financing and opening doors that may have been closed previously. It turns out.
Speaking at the signing ceremony held at the Zenith Bank headquarters in Accra, the Managing Director and Chief Executive Officer of Zenith Bank Ghana, Mr. Henry Onwuzuribo, said the Bank of Ghana is keenly aware of the importance of small and medium enterprises. Challenges faced in accessing finance.
He added that this partnership is consistent with the Bank’s belief that banking is at its purest when it directly impacts businesses and, by extension, the real economy.
“MSMEs are the lifeblood of Ghana’s economy and we are committed to providing them with the financial support they need to grow. With this partnership with AGF, we are committed to providing them with the financial support they need to grow. of businesses, especially those run by women,” Onwuzuribo said. We support people committed to sustainability and help them realize their full potential. ”
In its first agreement with Zenith Bank of Ghana, the African Guarantee Fund is ushering in a ground-breaking partnership aimed at strengthening the country’s SME lending activities. This collaboration represents significant progress in promoting economic growth and empowerment in Ghana’s vibrant SME environment. Benzine Kupeguro, AGF West Africa Managing Director, said: “This partnership is an important step forward in our mission to drive sustainable economic development through guarantee schemes that increase Zenith Bank lending to MSMEs in Ghana. ” he said.
The partnership leverages the African Development Bank’s (AfDB) Affirmative Financial Action for Women (AFAWA) initiative to create a customized guarantee scheme for women-owned and women-led businesses called the ‘AFAWA Warranty for Growth’. We provide This special guarantee will greatly support Zenith Bank. Z-Woman loan products This is their value proposition of bridging the financial gap faced by WSMEs.
Ailsalem Fasika, Country Manager, African Development Bank Ghana Office It shows a commitment to do so.” ceremony.
“The AFAWA component included in this transaction will support de-risking women-led businesses within Zenith Bank’s portfolio. We are excited to see the African Guarantee Fund further expand its support from financial institutions,” Fasika added.
The partnership also recognizes the growing importance of sustainability. Companies active in green sectors such as renewable energy, ecotourism and sustainable agriculture will benefit from increased financing under AGF’s Green Guarantee Scheme, demonstrating both institutions’ commitment to environmental sustainability. I will do it.
Beyond financial support, Zenith Bank and AGF are committed to providing MSMEs with the knowledge and skills they need to develop their capacity to scale their businesses. They will work together to offer training workshops on financial literacy, business management, and sustainable practices. These workshops will provide MSMEs with the tools they need to effectively navigate the market, make informed decisions, and run their businesses efficiently.
long tradition
This partnership builds on Zenith Bank’s long-standing dedication to supporting MSMEs in Ghana. In October 2022, the bank introduced a dedicated MSME account, partnered with organizations such as the Development Bank of Ghana (DBG) and the World Trade Center Accra, and collaborated with Alibaba to expand market access.
Additionally, the bank is collaborating with the German Institute for International Cooperation (GIZ) to provide access to financial training and partnering with VISA to roll out the Zenith SME Business card to meet the business needs of small and medium-sized enterprises and increase business efficiency. Improving productivity.
These initiatives demonstrate Zenith Bank’s unwavering commitment to fostering an environment where MSMEs can thrive and contribute meaningfully to Ghana’s economy.
By combining expertise and resources, Zenith Bank Ghana and AGF are building a strong ecosystem that will help Ghana’s MSMEs overcome challenges, realize their full potential, and power economic growth and prosperity. .
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