Ghana’s central bank announced measures here on Monday to induce growth in the country’s small and medium enterprises (SME) sector for economic growth and job creation.
“To further provide increased activity in the SME sector, the Bank of Ghana is setting aside two percent of the bank’s primary reserves to support targeted lending to SMEs,” the governor of the central bank Ernest Addison announced during the 91st Monetary Policy Committee (MPC) press briefing.
Addison said a total of two billion Ghana cedis (357.1 million US dollars) earmarked for this program would be released to commercial banks for onward lending to viable SME businesses to support the enterprise credit scheme announced by the government in the 2020 budget.
He said these funds would be held at the central bank to be made available to banks that would participate in the scheme.
“To strengthen the growth of credit to the private sector, the Bank of Ghana will also explore the possibility of setting aside a minimum portion of deposits to channel more deposits mobilized by banks to viable private sector projects,” the governor added.
Meanwhile, Addison also announced the decision of the bank to stay its benchmark policy rate at 16 percent for the fifth consecutive time after reducing it to this level in January.
Ghana’s headline inflation increased 0.1 percentage points to 7.7 percent in October, from the 7.6 percent recorded the previous month. Enditem