Small and Medium Enterprises (SMEs) interested in changing their machinery to energy efficient ones can secure loans to do so beginning next year.

The Green Loan Facility, an initiative of savings and loans company ProCredit, would make this possible.

Managing Director, Sarah Tsien Zetterli tells Joy Business the initiative is aimed at encouraging entrepreneurs to invest more in renewable energy and cut down on the cost of energy.

Interest rates on the Green Loan are negotiable and are lower than the typical business loan. The loan amounts for the initiative range from 10,000 Ghana Cedis to 4 million Ghana Cedis. Also, repayment can be relaxed for up to 10 years.

Small business owners have been complaining about the high cost of energy and are calling for a reduction. Although government has reduced utility tariffs by 25 percent, small business owners say it will make no difference in mitigating cost of operation.

Ms. Zetterli says ProCredit decided to take up the challenge to help small and medium enterprises switch to cheaper sources of energy, hence the Green Loan facility.

“We don’t need to be running generators and buying fuel which is very cost inefficient for business owners...” she added.

Ms. Zetterli was speaking to Joy Business at the end of a business forum held by ProCredit in partnership with Joy FM. The annual forum which was held on Thursday was aimed at educating small business owners on how to cope with taxation and rising energy tariffs.

About 120 small business owners participated in this year’s edition.