Government has announced a soft loan scheme of up to GHc 600 million for small and medium-scale enterprises (SMEs), which will sustain the country’s affected industries and address the disruption in economic activities caused by the pandemic.
This was revealed by President Akufo-Addo, during his update on Ghana’s Enhanced Response to the coronavirus pandemic, on Sunday, April 5, 2020.
“Government, in collaboration with the National Board for Small Scale Industries (NBSSI), Business and Trade Associations and selected Commercial and Rural Banks, will roll out a soft loan scheme up to a total of GHc 600 million, which will have a one-year moratorium and two-year repayment period for micro, small and medium scale businesses,” the President said.
In view of the impact of COVID-19 on Ghana’s economy, which is expected to cost GHc 9.505 billion, Government has made available a stimulus package of GHc 1 billion for industry.
Funding for COVID-19 Response
COVID-19 National Trust Fund was established by the President last month, to receive donations for disbursement to individuals who have been negatively impacted by the disease. So far, the fund has received GHc 8.75 million in donations.
The World Bank is also providing US$ 100 million to Ghana to assist the country in tackling the COVID-19 pandemic. This US$ 100 million will be made available to the government and the people of Ghana as short, medium and long-term support.
Government also awaits financial assistance form the International Monetary Fund to help the country address the economic impact of the COVID-19 pandemic.
Furtherance to this, the Finance Minister, Ken Ofori-Atta, has petitioned Parliament for an amendment of the Petroleum Revenue Management Act (PRMA) to allow government utilize portions of the Ghana Heritage Fund to deal with the Coronavirus pandemic.
However, this proposal has faced opposition from civil society organizations.
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