Sunday, 23 June

BoG, DBG, Proxtera disburse $100m to MSMEs

Business
BoG officials and stakeholders after signing $100m GIFE deal

In a landmark collaboration aimed at bolstering Ghana's Micro, Small, and Medium-sized Enterprises (MSMEs), the Bank of Ghana (BoG) and Development Bank Ghana (DBG), in conjunction with digital partner Proxtera and supported by the Monetary Authority of Singapore (MAS), have announced an ambitious target of US$100 million to be channeled into the Ghanaian MSME ecosystem via the Ghana Integrated Financial Eco-system (GIFE).

The announcement was made during the ongoing 3i Africa Summit sessions, during a signing ceremony between DBG and Proxtera. 

This collaboration aims to expedite the disbursement of up to 1.83 billion Ghanaian Cedis through the wholly digital infrastructure established by the GIFE programme.

GIFE, which was launched at the 2022 edition of the Singapore Fintech Festival and operationalized in the first half of 2023 with Consolidated Bank of Ghana as its pilot financial institution partner, is a digital platform designed to empower MSMEs.

 It offers a comprehensive suite of services, including financial literacy, the creation of trusted credentials utilizing the global Universal Trusted Credentials framework, access to working capital, and facilitation of cross-border trade with Asia and the ASEAN region.

Saurav Bhattacharyya, CEO of Proxtera, expressed pride in supporting GIFE as a founding partner, highlighting Proxtera's commitment to leveraging trusted credentials and digital infrastructure to propel Ghanaian MSMEs onto the global stage of digital cross-border trade and financial networks.

K Duker, CEO of DBG, hailed the partnership as a pivotal moment in DBG's mission to provide sustainable finance solutions to Ghanaian businesses, particularly MSMEs.

 He emphasized the critical role of MSMEs in Ghana's economy and expressed optimism that the GIFE programme would catalyze their growth and contribute to the country's economic resilience and prosperity.

Dr. Ernest K.Y. Addison, Governor of the Bank of Ghana, reiterated the central bank's commitment to exploring innovative financing models and enhancing MSME contribution to economic growth, in alignment with the broader economic transformation goals of the Ghanaian government.

Mr. Sopnendu Mohanty, Chief FinTech Officer at MAS, emphasized the importance of the GIFE programme in fostering collaboration between central banks and emerging markets, noting its potential to revolutionize financial inclusion through smarter data-driven support mechanisms tailored to the needs of MSMEs and financial institutions.

''As the GIFE programme gathers momentum, stakeholders anticipate significant strides in enhancing the resilience, competitiveness, and international reach of Ghanaian MSMEs, positioning them for sustained growth and prosperity in the global marketplace

Source: Classfmonline.com/Ohene Kwadwo Alidjah CTV