IFC, a member of the World Bank Group, today announced a loan to Societe Generale Ghana Ltd. (SGGH) to support the bank’s reach and provision of services to thousands of Ghanaian small and medium enterprises (SMEs), which in turn support growth and job creation in the country.
The US$50 million senior loan will support SGGH in expanding its provision of loans of up to five years to Ghanaian private enterprises and SMEs, which comprise more than 90 percent of businesses in Ghana, helping boost their business growth.
A 2017 IFC study of Ghana’s private sector found that limited access to finance is a key constraint to SME growth in the country and a lack of access to longer-term loans discourages many smaller businesses from making significant capital investments.
Ouzzani Hakim, SGGH Managing Director, said, “This partnership with IFC is resolutely positive and will allow SGGH to play its full role in active support of the Ghanaian economy and the private sector. Our commitment, through the Grow with Africa Programme of SOCIETE GENERALE, aims to significantly increase our funding to SMEs in Africa and particularly in Ghana.”
Ronke Ogunsulire, IFC Country Manager for Ghana, said, “We are excited to work with SGGH and play a role in helping businesses in Ghana, protecting jobs, and encouraging growth, particularly during the COVID-19 pandemic.”
Over the last 10 years, IFC has provided over US$4 billion of financing and advisory services in Ghana for the agribusiness, education, energy, financial services, manufacturing, transport, tourism, and other sectors.