SG Ghana targets more SMEs financing to double efforts in the sector

Hakim Ouzzani, Managing Director of Societe Generale (SG), Ghana

Upon meeting the minimum capital requirement of GHc 400 million, the Managing Director of Societe Generale (SG), Ghana, Hakim Ouzzani has disclosed that the bank is focused to double its efforts in the Small Medium Enterprises (SMEs) sector.

In an interview after bank met with some of its stakeholders, Ouzzani said, “we will double our efforts on the segments to grow. In the near future would bring about some new initiatives towards the SMEs in Ghana.”

“One of the main objectives of our strategies is the SMEs, because we believe that the SMEs sector can drive growth in the economy,” he added.

As part of the objectives for this year, the bank intends to grow its share of the market from 5 percent to 7 percent by 2020.

Minimum Capital Requirement

SG Ghana increased its stated capital to GHc 404,245,426.72 via a Bonus Issue of GHc 97,000,000.00 and a Rights Issue of GHc 168,942,501.90, thus meeting the Bank of Ghana’s Directive issued in September 2017.

He explained that the Board of Directors obtained Shareholders authorization at the 38th Annual General Meeting of the bank on 28th March 2018.

The increase was through a bonus issue by the transfer from Income Surplus to Stated Capital of GHc97 million backed by a bonus share of 6 to 1 and a Renounceable Rights Issue to raise up to GHc170 million.

“This effort has strengthened the capital base of SG Ghana to enable the Bank engage in higher volumes of financial transactions, said Ouzzani. “The new capitalization will make it possible for SG Ghana to position itself to take advantage of the huge opportunities in the Ghanaian industry. It will also enhance the Bank’s competitive edge and enable it deal with new challenges”.

By Joshua W. Amlanu