CBG Secures $5m to Support 3,000 Women, Youth and MSMEs
By Maame Efua Kwaduah
Consolidated Bank Ghana (CBG) has secured a US$5 million funding allocation from the Social Investment Fund (SIF) to support about 3,000 women, young people and micro, small and medium-sized enterprises (MSMEs) over a 36-month period.
The approximately GH¢55 million financing is being provided under the Ghana Women, Youth, Empowerment, Employment and Social Cohesion Assets to Finance Compact, as part of the US$71 million Ghana Women and Youth Employment and Social Cohesion Programme funded by the African Development Bank.
Under the programme, US$50 million has been allocated to finance women- and youth-led MSMEs, with CBG, GCB Bank and Apex Bank participating as financial institutions.
Managing Director of CBG, Dr. Naomi Wolali Kwetey, said the first 25% advance of the bank’s allocation would support approximately 800 beneficiaries.
She said CBG would ensure that the funds reached the intended beneficiaries through a transparent selection process, sound credit appraisal and timely disbursement.
“CBG is committed to a transparent beneficiary selection process, sound credit appraisal, timely disbursement and diligent monitoring,” she said.
She added that the bank would provide beneficiaries with the necessary support to enable them to use the financing effectively and improve the sustainability of their businesses.
Chief Executive Officer of the Social Investment Fund, Lawyer Abass Adam Nurudeen, said CBG’s US$5 million allocation could increase depending on the bank’s performance under the programme.
He explained that the financing operates under a results-based financing (RBF) model, which links access to additional funds to the achievement of agreed targets.
“The most important thing is the achievement of results because if we don’t achieve the results, we will be unable to draw down. The beauty of the RBF model is that even though the project has a lifespan of about three to four years, if you are able to achieve the results earlier, you draw down earlier,” Lawyer Nurudeen said.
He said CBG could access the full US$5 million if it meets its targets, with the possibility of securing additional funds based on its performance.
The programme will also provide beneficiaries with business development services and financial literacy training to strengthen financial management, improve business operations and enhance their capacity to grow.
The support is expected to help businesses expand, create jobs and improve livelihoods, particularly among women and young people who often face difficulties accessing affordable financing.
The Ghana Women and Youth Employment and Social Cohesion Programme is part of broader efforts to address unemployment, promote entrepreneurship and expand economic opportunities for vulnerable groups.
With CBG, GCB Bank and Apex Bank participating in the US$50 million MSME financing component, the programme is expected to channel substantial resources to businesses across the country.
For CBG, the allocation provides an opportunity to extend productive financing to businesses while the results-based approach places emphasis on measurable outcomes, including business growth and job creation.
The 36-month implementation period will enable participating institutions to work with beneficiaries, monitor the use of funds and assess the impact of the financing on businesses, employment and livelihoods.
