Audio By Carbonatix
The Chief Executive Officer of the Development Bank Ghana (DBG), Kwamina Duker, is optimistic that the partnership between his outfit and Sinapi Aba Savings and Loans will foster growth among small and medium-scale enterprises.
At a signing ceremony that marked the beginning of what he described as a "unique partnership”, Mr Duker said DBG seeks to bridge the gap and help solve the deficiency in long-term SME loans.
Interacting with the media, Mr Duker underscored the exceptional nature of this collaboration, emphasising that it marked the first instance where DBG had extended its support to a Savings and Loans institution.
He acknowledged the challenges posed by the current economic climate but stressed the importance of DBG going the extra mile to collaborate with institutions like Sinapi Aba Savings and Loans.
“Why Sinapi is important to us is because, Sinapi is one of the major Savings and Loans. It has 44 branches in 14 regions and a client base of half a million and it is essential that DBG helps to provide support to an institution that has 500,000 clients. You can imagine how significant that would be.
“Now this is a small medium institution but they are the ones that particularly need help at this time. And to work with an institution that has been around for 30 years and has demonstrated resilience through different economic cycles. Thus this is a perfect partnership for DBG to begin supporting a competitive private sector,” he said on Monday.
Elaborating on DBG's role in the partnership, Mr Duker explained that DBG was not established to provide short-term financing but rather to bridge the financing gap with long-term, affordable cedi financing.
This commitment, he stressed, was at the core of DBG's mission and was instrumental in driving private sector growth.
“So our main goal is to provide that additionality, not to compete but to fill a missing gap. We lend up to 15 years and I am hopeful that we will lend more and longer,” he noted.
On his part, the CEO of Sinapi Aba Savings and Loans, Tony Fosu, was enthusiastic about the partnership.
According to him, the support of DBG means more SMEs who hitherto would not have obtained financial support stand a chance.
Touching more about the partnership, he said sectors these loans will be going to include education, agriculture, health and manufacturing.
Moreover, about 50 women-led businesses and 30 youth entrepreneurs will benefit from it. Which will in turn create more jobs and indirect businesses.
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