The European Union is ready to support small businesses in Ghana in need of desperate funds.
The EU Ambassador to Ghana, Diana Acconcia said this in an interview on the Citi Breakfast Show on Tuesday.
Speaking on the Citi Breakfast Show, she said the EU’s interaction with small business, all pointed to the issues of high-interest-rates banks offer on loans making it hard for these businesses to survive.
“At the moment, the EU has a program in Ghana executed by the United Nations Industrial Development Organization (UNIDO) Ghana. The idea is to help the small business and individuals that have a good idea and cannot find the finance. This is a limitation that has come up at all the discussions we have had with the local business, especially for the small ones. In Ghana, interest rate is very hard, collaterals are demanded by banks and if you are a young person with a good idea, it is extremely difficult for you to get funding,” she said.
She said the funding will be in the form of guarantees, where international financial institutions will provide guarantees which will go to local banks and then passed on to investors.
She also confirmed that Jyrki Tapani Katainen, the former Prime Minister of Finland and Vice President of the European Commission will be visiting Ghana soon.
She added that Jyrki Tapani Katainen is in charge of the external investment plan for these small businesses in Ghana the EU will be supporting.