Improving MSME Access to Finance in Ghana (project 2-pager)

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In cooperation with: with: In cooperation

Programme for Sustainable Economic Development (PSED) in Ghana Financial Systems Development (FSD) Improving MSMEs’ access to financial services The challenge

Our approach

Around 80% of the Ghanaian population are employed by MSMEs. However, access to finance is a major obstacle for them. They often do not have a full understanding of the range and requirements for financial products, including insurance.

MSMEs are trained in financial management practices, increasing their readiness to access financial services. Moreover, FSPs’ supply of financial services and products for MSMEs will be improved through capapcity building.

The goal

Our partners

The programme component on Financial Systems Development aims to improve MSMEs’ access to financial services. On the one hand, through support to financial service providers in improving the supply of needs-based financial and insurance products and services. And on the other hand, through accompanying measures to develop the capacity of MSMEs to access and benefit from these products and services.

Project name

Programme for Sustainable Economic Development (PSED)

Component

Financial Systems Development (FSD)

Intervention

Improving MSME Access to Finance

Commissioned by

German Federal Ministry for Economic Cooperation and Development (BMZ)

Project region

Ghana (country-wide)

Implementing consortium

AFC Agriculture and Finance Consultants, GOPA Worldwide Consultants, CDC Consult

Duration

Sept 2020 – Dec 2022

Financial service providers (FSPs): 1.

Access Bank Ghana

2.

Allianz Life Insurance Ghana

3.

GLICO General Insurance Company Ltd

4.

Letshego Savings and Loans

5.

Sinapi Aba Savings and Loans

Sector associations (selected to access MSMEs): 1.

Ghana Cooperative Fashion Designers Association (GCFDA)

2.

Ghana National Association of Garages (GNAG)

3.

Ghana National Tailors and Dressmakers Association (GNTDA)

The benefits MSME and financial sector analyses Technical assistance to partner FSPs: product development process; MSME strategy; support for digital channels and technologies; training and capacity building Provision of training in “Financial Management and Access to Finance” to MSMEs Bringing FSPs and MSMEs together: focus groups to develop new financial products for MSMEs, FSPs presenting their products at MSME trainings

Far left: MSME customer at the counter of Access Bank Ghana. Left: MSME signing up for a new financial product by Access Bank Ghana, at a member meeting of the Ghana National Association of Garages. Photos: © GIZ / Anthony Dotey


Contact person Cynthia Odonkor Component Manager – Microfinance

Examples of our success

cynthia.odonkor@giz.de

2,258

MSME trainings map

MSMEs trained across Ghana.

Northern Region

337

Bono Region

51% of them are female entrepreneurs.

129

277

208

GHA NA

68

212

209

Greater Accra Ashanti Region

FSP employees were trained or benefitted from capacity building. In addition, 56 employees of micro finance institutions and 37 from the insurance sector were trained.

868

563

Training of Trainers ensures sustainable impact:

172 349

35 277

62 local solidarity support groups

347

172

48 trainers have been trained to deliver the training contents to their association peers and to give one-on-one support for 840 MSMEs.

79

Western Region

213

(in-person and digital) have been formed, promoting peer learning and exchange of ideas.

88 125

Key

9

GCFDA – Ghana Cooperative Fashion Designers Association

newly developed financial products, incl. 3 insurance products.

GNAG – Ghana National Association of Garages GNTDA – Ghana National Tailors and Dressmakers Association MSME trained

Other organisations

Product prototypes developed

MSMEs have signed a contract for an innovative financial product from the FSPs.

2,533 55%

For Letshego Savings and Loans: Madwuma Ntoboa Savings Plan, Nkosuo Bosea Loan Solution

45%

A Financial Products Launch Event to formally launch FSPs‘ newly developed products.

For Access Bank Ghana: Live Beta Savings Product, Instant Business Loan For Sinapi Aba Savings and Loans: Group loan, Individual loan

95%

For GLICO General Insurance Company: Mechanics Internal Risk Policy, Personal Accident Policy For Allianz Life Insurance Ghana: SME Assured Plan

Published by

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

of trained MSMEs say that they feel better prepared now for future risks.

Photo credits

Registered offices Bonn and Eschborn, Germany

96% say that the project enabled them to increase the efficiency of their company.

Anthony Dotey

GIZ is responsible for the content of this publication.

Programme for Sustainable Economic Development (PSED) GIZ Country Office Ghana 7 Volta Street Airport Residential Area Accra, Ghana + 233 302 760 448 www.giz.de/ghana As at

December 2022

Printed by

GIZ Country Office Ghana, Accra

On behalf of

Federal Ministry for Economic Cooperation and Development (BMZ)

In cooperation with:

In cooperation with


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