ABSA Bank invests GH¢1.1bn in young entrepreneurs
ABSA Bank in collaboration with Mastercard Foundation has invested over GH¢1.1 billion covering 5,900 small companies across the country.
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It forms part of the Absa Young Africa Works (AYAW) project, a five-year initiative which commenced in 2020 and expected to end next year and create over 50,000 decent jobs.
The implementers made the revelation during their visit to some beneficiary local companies in the Eastern and Greater-Accra Region last Tuesday.
The local businesses visited included G Billy Farms located in Nsawam; Praise Export Services Limited in Pokuase; and Eden Tree, a fruit and vegetable producing and processing company located on the Spintex Road.
As part of the AYAW project, Praise Export received in excess of GH¢22 million funding, while G Billy Farms Limited received GH¢3.3 million, with Eden Tree taking GH¢ 1 million.
They are to help young men and women by empowering those in micro, small, and medium-sized enterprises (SMEs) business through the provision of entrepreneurial skills training and collateral-free business loans at 10 per cent interest rate.
Support, challenges
The beneficiaries of the facility recounted the positive impacts of the funding from Absa Bank and the Mastercard Foundation on their operations.
The Chief Executive of Praise Export Services Limited, Godwin Edem Adordie said the AYAW project had helped the company increase production capacity and expand its export operation to the European markets.
“Before the facility, we exported between 180-200 metric tonnes of our produce each quarter, but now we export between 250-300 metric tonnes every quarter.
It helped in modernising our facilities leading to more efficiency and higher quality of products that meets international standard and market. It also increased employment from just a little over 100 to 165 employees,” he said.
Meanwhile, he appealed to regulatory bodies to be well informed about the standards of the European exports and expedite approvals to facilitate exports of their products.
The General Manager of G Billy Farms, Eric Danquah indicated that the investment had help his company to expand pineapple farming to nearly 100 acres while it is envisaged to move beyond 100 acres by end of the year.
He noted that funding has also increased employment from 35 to over 100 workers; while it also helped acquire a new tractor to improve farming.
He however, urged government to subsidise farm inputs such as fertilisers to create the enabling environment for farming to thrive.
For her part, the Managing Director of Eden Tree, Catherine Krobo Adusei said the funding had helped balance its operation which had experienced financial challenges in paying staff and suppliers.
She indicated that the facility had also increased capacity and employment to 60 from about 30 employees over the period of implementation.
She urged government to help farmers with implements such as solar panels as fuel had become expensive in using for irrigation farming thereby discouraging many young people from venturing into farming.
Impression
The Lead of the Absa-Mastercard Foundation Programme and the Director of SMEs, Agency Banking and Partnership at Absa Bank, Audrey Abakah expressed satisfaction at the transformation seen at the visited facilities.
“I have been fulfilled because as a banker, for ABSA Bank. Seeing that these businesses we supported have used the money for their intended purposes and we are seeing the true results is heartwarming,” Ms Audrey stated.
She added that the project had focused on the agriculture sector because the sector had untapped potential to harness to ensure food security and create sustainable jobs and contribute to the Gross domestic product of the country.
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