DBG, Sinapi Aba Savings and Loans to support MSMEs
DEVELOPMENT Bank Ghana (DBG) has partnered Sinapi Aba Savings and Loans to provide a facility loan of GH¢15 million to some 150 micro, small and medium enterprises (MSMEs) to make a transformative impact on the sector.
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The partnership between the two institutions will afford DBG the opportunity to tap into Sinapi Aba’s network of forty-four branches located in 14 regions of the country.
This will further offer the bank the window to reach the 65 per cent of Sinapi Aba’s customers who are in the rural areas.
Sinapi Aba on the other hand will receive wholesale capital which it will on-lend to its base of MSME customers, majority of whom are in the rural areas as patient-capital.
This came to light when CEO of Sinapi Aba Savings and Loans, Anthony Gyasi Fosu, together with his management team, paid a working visit to the office of DBG in Accra on October 2.
Strategic alliances
The Chief Executive Officer of the DBG, Kwamina Duker, said the bank since its inception in June last year had been forming strategic alliances with key Participation Financial Institutions (PFI) including universal banks in order to be able to support the MSME sector.
He said Sinapi Aba was the first savings and loans company to be on boarded as a PFI by bank due to its rich, credible and trusted reputation in delivering proven financial services to MSMEs and individuals who may have limited access to traditional banking services.
He indicated that the partnership with Sinapi Aba would allow the bank to reach an untapped target group, which are the grass-roots businesses, who were also a vital component of the whole MSME sector.
According to Mr Duker, the partnership would, among many other benefits, bring about enhanced access to financial support to local businesses, business growth opportunities, capacity building, and preservation of livelihood especially among the lower-income strata communities.
He indicated that the ripple effect of the efforts would resonate across the nation, creating around 6,000 jobs, supporting 30 youth entrepreneurs, and indirectly benefitting an astounding 30,000 individuals.
Fuelling economic growth
Throwing more light on DBG’s journey so far, Mr Duker said the bank was driven by an unwavering commitment to fuelling the economic growth.
Already, he said it had disbursed a GH¢ 731 million with an impressive GH¢277 million allocated just in September and was hoping to achieve GH¢1 billion by the end of the year.
“With our enhanced lending system, we’ve become more efficient, enabling swifter disbursements to our partners. And our ambition doesn't stop here; by the end of 2023, we aim to disburse a staggering GH¢1 billion.
This collaboration with Sinapi Aba not only strengthens our position as a leading lender in Ghana but also fortifies our shared mission to champion the growth of SMEs, especially those led by women. As we come together, we are not just fostering business growth but lighting the path of hope, resilience and progress for countless communities,” he said.
Long-term patient capital
In his remarks, the CEO of Sinapi Aba Savings and Loans mentioned that the alliance with DBG would open a new door of offering long-term patient capital to the numerous local businesses who desired facilities with longer time span to allow them grow their businesses and return value to their stakeholders.
Mr Fosu also added that the acknowledgement by DBG of Sinapi Aba's pivotal role in the noble mission of building lives through financial inclusion and empowerment stood as a profound endorsement of the enduring commitment spanning 29 years.
“This recognition underscores our capacity to broaden financial access across a more extensive market, augmenting our capacity to provide enhanced financial solutions,” he added.