NBSSI disburses GH¢57.1m to 64,196 small businesses

Finance Minister Ken Ofori-Atta has revealed that more than 64,000 small businesses have received financial support to help alleviate the economic impact of the COVID-19 pandemic.

Presenting the mid-year budget review statement last week, Mr. Ofori-Atta said GH¢57.1m has been given out as microloans as part of the Coronavirus Alleviation Programme (CAP) Business Support Scheme run by the National Board for Small Scale Industries (NBSSI).

The Minister stated that the average amount disbursed was GH¢889.80.

The amount disbursed so far is less than 10 percent of the GH¢600m scheme designed to support micro, small and medium enterprises (MSMEs) under government’s GH¢1.2b Coronavirus Alleviation Programme.

The scheme had received more than 700,000 applications as at June 26. The applicants submitted requests for assistance totalling GH¢7.6bn, with microbusinesses accounting for GH¢5.2bn of the amount.

Small businesses support

Under the scheme, government, through the National Board for Small Scale Industries (NBSSI), and in collaboration with business and trade associations and selected commercial and rural banks, is rolling out a soft loan scheme with a one-year moratorium and two-year repayment period for MSMEs.

The scheme established the Adom Micro Soft Loans for micro-enterprises that are being disbursed through Vodafone mobile money. The Anidasuo Soft Loans, targeted at small and medium enterprises, will be disbursed through participating financial institutions.

According to the Minister, through the scheme, tax identification number (TIN) registration in Ghana increased from approximately 110,000 a month to 815,449 from May 19 to June 30, thereby supporting government’s agenda to formalise the informal sector.