IFC partners with Access Bank to boost SME financing in Ghana
The International Finance Corporation (IFC) has teamed up with Access Bank (Ghana) Plc to expand access to finance for small and medium-sized enterprises (SMEs) in Ghana, with a particular focus on supporting women entrepreneurs. This partnership is aimed at stimulating economic growth and job creation in key sectors of the economy.
Under the new agreement, the IFC will invest up to $10 million local currency equivalent through an unfunded Risk Sharing Facility (RSF) with Access Bank. This initiative will help increase lending to SMEs, particularly in sectors like agriculture, health, education, and green initiatives such as energy efficiency and sustainable building practices.
The RSF will provide a 50% guarantee on a portfolio of loans to eligible SMEs, up to a total value of $20 million in Ghanaian cedis. This eliminates the risk of currency fluctuations, making it easier for businesses to secure loans. Notably, at least 25% of this facility will be dedicated to women-owned SMEs (WSMEs), an effort to bridge the gender finance gap.
This facility is part of the IFC’s Small Loan Guarantee Program (SLGP), designed to de-risk and scale up financing for SMEs in Ghana and other emerging markets. Supported by the European Union through the European Fund for Sustainable Development, SLGP aims to enhance financial inclusion and address the SME financing gap, fostering job creation and economic growth.
Speaking at the signing ceremony, Olumide Olatunji, Managing Director of Access Bank (Ghana) Plc, expressed enthusiasm about the partnership’s potential. “At Access Bank, we have always been committed to supporting SMEs, and this partnership with IFC further strengthens our dedication to empowering micro, small, and medium enterprises,” he said. “By improving access to finance, we can help SMEs thrive and contribute meaningfully to Ghana’s economy.”
Kyle Kelhofer, IFC’s Senior Country Manager for Ghana, highlighted the importance of local currency funding in driving economic growth. “Our commitment to providing financial and advisory support to small businesses in Ghana reflects our goal of fostering a more inclusive and resilient economy,” he noted.
Access to finance remains a major challenge for many SMEs in sub-Saharan Africa, especially for women-owned businesses. The Global Findex Database estimates the credit gap for women-owned SMEs in Ghana at $213 million in 2021. The partnership between IFC and Access Bank aims to address this gap, with a goal to triple Access Bank’s WSME loan portfolio to $60 million by 2028.
Over the past decade, the IFC has invested nearly $2 billion in Ghana, targeting sectors such as healthcare, energy, agribusiness, and financial services. This latest initiative is expected to further strengthen the country’s SME sector and promote inclusive economic development.
