President Akufo-Addo has announced auditing and accounting firm KPMG to serve as technical advisors to the GH¢1 billion stimulus package to be managed by the National Board for Small Scale Industries (NBSSI).
According to the President, the auditing firm will support the efforts by the loan committee and other state agencies handling the fund to effectively achieve the target for the program.
President Akufo-Addo used the opportunity to assure all micro small and medium enterprises that the disbursement of the fund will be transparent.
He made the announcement when launching the programme at Jubilee House in Accra.
“With the funds under the Scheme to be managed by NBSSI, and to be supervised by a loans committee, composed of one representative each of the Ministries of Finance and Trade and Industry, a representative of the NBSSI, and a representative of the participating banks, the well-known audit firm, KPMG, will act as technical advisors to the Scheme” he said.
President Akufo-Addo explained that the outbreak of the coronavirus pandemic has had a devastating impact on all economies around the world, with reduced productivity, job losses, and a steep decline in revenues for government, businesses, households and individuals in Ghana.
Amongst the hardest hit in Ghana, according to the President Akufo-Addo, are micro, small and medium-scale enterprises (MSMEs), which account for 70% of the country’s Gross Domestic Product (GDP), and represent some 92% of businesses.
“This amply highlights the important role MSMEs play in the growth and development of our economy, necessitating the special attention of government,” he said.
Out of the GH¢1.2 billion earmarked for this Programme, GH¢600 million will be disbursed as soft loans to MSMEs, with up to one-year moratorium and a two-year repayment period. The rate of interest on government’s GH¢600 million facility is 3%.
Additionally, selected participating banks will provide negotiated counterpart funding to the tune of GH¢400 million, making, in all, GH¢1 billion for disbursement under this Business Support Scheme, with the entire scheme set to attract some 180,000 beneficiaries across the country.
“Disbursement of the funds will be effected through the participating banks. Transparency and accountability will be the hallmarks of the operation of the Scheme,” he added.