The Managing Director of Consolidated Bank Ghana Ltd. (CBG), Daniel Wilson Addo, has introduced that CBG is growing its Compact and Medium-sized Enterprises (SME) abilities by partnering with the new Advancement Bank Ghana (DBG) to provide complex and fiscal guidance to the sector.
CBG defines SMEs as smaller businesses with annual economic turnover of up to GH¢15m and medium businesses with turnover up to GH¢75m.
Speaking to a part of the media on CBG’s agenda for SMEs this 12 months, Mr. Addo indicated that CBG has in excess of the a long time delivered extensive guidance to SMEs and is eager on increasing its capabilities in the sector to tap into opportunities that exist and be certain an enhanced contribution from the SME sector to the country’s overall economy. According to him: “We have approached this in a holistic method, and it is just not to fund SMEs but to just take the overall SME price chain and see how we can:
- allow businesses to work additional proficiently by unlocking money that is trapped in receivables,
- aid collection for SMEs, and importantly
- make capability in the SME place.
We have completed that by means of the merchandise we have rolled out and by the technological know-how platforms we have recognized. This allows SMEs to gather money through their cell wallet and make deposits by means of mobile tellers deployed in the markets to collect income from SMEs”.
CBG has in excess of the very last couple of a long time increased its money assist to SMEs by disbursing above GH¢1.3billion and also expanded its get to to them by way of its 114 branches across the region. These have been complemented by technological platforms which supply benefit and security to the Bank’s SMEs. For CBG, SMEs are a vital populace in its agenda to encourage the financial advancement of Ghana. The introduction of DBG hence provides the Financial institution with an prospect to offer that much-desired assistance, which CBG has welcomed.
Mr. Addo highlighted that: “DBG is a money establishment that was set up to handle extremely essential challenges within the organization local community. That is, the access to long-term funding of SMEs that supports investments and advancement. With a cash base of GHS1.2billion and counting, mainly because there will be additional capital, we are confident that DBG is sufficiently capitalised to discharge the mandate that it has”.
He further more included: “It is important to know that DBG as a wholesale loan company will not be working directly with customers and SMEs or area corporates, but will be disbursing its funding by way of fiscal establishments that are selected as taking part fiscal institutions. I am delighted that DBG has been established up and is running, since there is likely to be a good deal of price produced in the area as DBG commences its lending activities to SMEs by way of commercial banking companies like CBG”.
On the partnership with DBG, Mr. Addo indicated that CBG is delighted to function with DBG on the very laudable agenda of supporting SMEs. Furthermore, DBG will provide partial credit guarantees, and these are ground breaking strategies to funding that will also broaden and deepen the complete monetary ecosystem for CBG and SMEs.
Mr. Addo suggested SMEs to get benefit of the prospect offered by the introduction of DBG in buy to expand and produce extra work opportunities. He outlined that accessing the loans will be as easy as making use of, supplied the applicant is a CBG client and the Bank can just take a search at their fiscal flows. “CBG has an impressive way of wanting at your financing, and for that reason it’s not all the time that we will inquire for collateral – but essentially going again to Finance 101, lending is about dollars circulation and so our solutions, companies and know-how platforms are geared toward owning a view of that customer’s money movement and the moment we have a see of that and we are in a position to tie-in collections from individuals dollars flows, we are ok,” he stated.
CBG has 114 branches in 13 out of the 16 areas in Ghana which offer you SMEs accessibility to the Bank’s goods and solutions. This is in addition to the Bank’s SME Centre in Accra and digital channels. An additional SME Centre will be established in the Ashanti Location in purchase to boost access to funding and technical guidance for the sector. Furthermore, the Lender is positioning itself to engage in a important role in making sure that SMEs consider whole edge of the Africa Continental No cost Trade Area’s (AfCFTA) alternatives.
Commenting on the CBG-DBG partnership, Mr. Addo claimed: “This partnership will support reinforce our stability of payment positioning since it will boost exports, specifically into the sub-location, and ultimately place Ghana as a production and products and services hub inside the sub-area as effectively as the gateway to West Africa, as we have often wished to be. DBG is really necessary to this full agenda simply because DBG delivers to the table the critical lengthy-phrase financing that is important for SMEs to expand their companies and markets for their items and expert services. These, for me, are the essential rewards from this DBG-CBG partnership”.
DBG will be introduced on 14th June. It is anticipated to start building bulletins in the quite close to potential.