REP earmarks $6 million for small businesses

The Rural Enterprises Project (REP) under the auspices of the government has set aside a six-million dollar credit facility to support micro and small businesses in the country.

The facility would be made available through the project’s matching grant fund and rural enterprises development fund.

The National Director of REP, Akwasi Atta Antwi announced this at a day’s orientation workshop on REP credit facility for financial institutions and business advisory centres in Sunyani.

It was part of a series of sensitisation workshops for 100 financial institutions and business advisory centres from participating districts of the rural enterprises programme.

In particular, the workshop is to highlight the role of the business advisory centre in credit delivery at the district level.

He said $1.9 million out of the amount would be devoted to the matching grant fund to help about 7,000 businesses to acquire production and processing equipment to grow their businesses.

Mr. Atta Antwi said the remaining $5.1million would be disbursed to 22,000 micro and small enterprises through the rural enterprises development fund.

He said in order to develop the full potential of rural micro and small enterprises in Ghana, a district day’s model for supporting rural businesses had been implemented since 1995.

The model is based on three business development service technology transfers through technical skill training and demonstrating equipment.

Opening the workshop, the Brong-Ahafo Regional Minister, Eric Opoku said micro and small enterprises provide opportunities for the rural poor to diversify their incomes and create new sources of economic growth.

He said the government appreciated the crucial role of micro and small enterprises in local economic development and the improvement of livelihoods for many rural Ghanaians.

Mr. Opoku said over the years, the government has supported a number of initiatives aimed at rapid expansion of financial services and advised the beneficiary districts to monitor the programme in order to ensure its sustainability.