Ministry of Finance and the African Development Bank (AfDB) are set to provide Microfinance and Small Loans Centre (MASLOC) with a grant worth $31.34 million to cater for its operations across the country.
The ADB is donating a $28.5 million grant with the government coming in with $2.84 million. The funding aims to enhance women’s access to credit, financial literacy, and information sharing, particularly focusing on women-led Micro, Small, and Medium-Scale Enterprises (MSMEs) which will also strengthen MASLOC’s activities and help fulfill its mandate of providing micro loans to SMEs in the country.
The facility will provide affordable interest rates of 12% per annum under its project dubbed ‘post-Covid-19 Skills Development and Productivity Enhancement Project’ (PSDPEP). It will be implemented in seven regions of the country namely Greater Accra, Ashanti, Eastern, Bono, Northern, Central and Upper West.
With this funding, MASLOC is set to complete its loan management software (LMS), training and capacity building of over 550 staff members, and networking of all regional and district offices with the Head Office.
As part of government’s digitalization drive, a robust digital infrastructure that streamlines loan applications, processing, disbursements, and recoveries will be set up by MASLOC to create around 20,000 indirect jobs through skills training, self-employment opportunities, and improved access to credit facilities.
The project comprises three components: skills development in higher education for strengthening the health sector, rebuilding youth and women’s livelihoods through entrepreneurship and job creation, and project management.
The implementation of the project involves institutions such as the Social Investment Fund (SIF), Ghana News Agency (GNA), University of Ghana (UoG), and the Microfinance and Small Loans Centre.
Source: The Independent Ghana | Andy Ogbarmey-Tettey