Zenith Bank (Ghana) Limited, a
leading holistic financial services provider, and African Guarantee Fund (AGF),
have announced a strategic risk-sharing partnership to provide increased access
to funding for Micro, Small and Medium Enterprises (MSMEs) in Ghana, with a
particular focus on green business and women-owned/led businesses.
Recognizing that most MSMEs
struggle to secure loans due to insufficient collateral or lack of credit
history despite their invaluable contribution to the economy, this
collaboration unlocks a suite of financial products and services specifically
designed to address the unique needs of these businesses, fostering their
growth and success.
AGF will provide partial
guarantees on loans issued by Zenith Bank Ghana, thus reducing the Bank's risk
and making it easier for MSMEs to qualify for funding, opening doors they might
have found previously closed.
Managing Director and Chief
Executive Officer of Zenith Bank Ghana, Henry Onwuzurigbo, speaking at the
signing ceremony which came off at the Zenith Bank Head Office in Accra, said
the Bank was acutely aware of the importance of small and medium size businesses
as well as the challenges they face in accessing finance.
He added that the partnership was
consistent with the Bank’s belief that banking is exhibited in its purest form
when it has a direct impact on businesses and consequently, the real economy.
"MSMEs
are the lifeblood of the Ghanaian economy, and we are committed to providing
them with the financial support they need to thrive,” Mr. Onwuzurigbo stated. “This partnership with AGF will enable us to
reach more businesses, particularly those owned by women and those committed to
sustainability, and help them achieve their full potential.”
African Guarantee Fund, in its
first agreement with Zenith Bank Ghana, is pioneering a landmark partnership
aimed at bolstering SME lending activities in the country. This collaboration
marks a significant stride in fostering economic growth and empowerment within
Ghana's vibrant SME landscape. Mr. Bendjin Kpeglo, AGF West Africa Managing
Director said, "This partnership is
a significant stride in our mission to drive sustainable economic development through
our guarantee facilities to increase Zenith Bank’s financing of MSMEs in Ghana."
The partnership leverages African
Development Bank’s (AfDB) Affirmative Finance Action for Women in Africa
(AFAWA) initiative, to offer a tailored guarantee facility for women-owned and
women-led businesses dubbed “AFAWA Guarantee for Growth”. This specialized
guarantee will greatly support Zenith Bank's Z-Woman loan product which
is their value proposition to close the financial gap faced by WSMEs.
"This
new signature agreement illustrates the African Development Bank’s commitment,
through the AFAWA initiative, to promote women's economic empowerment and
financial inclusion while addressing the gender financial gap in Ghana,” said
Eyerusalem Fasika, Country Manager of the African Development Bank's Ghana
Office, after the ceremony.
“The AFAWA component within this transaction will
support Zenith Bank in de-risking women-led businesses within its portfolio.
We’re thrilled to see AFAWA and its implementing partner, the African Guarantee
Fund, grow more support from financial institutions to boost women
entrepreneurs access to finance in Ghana," Fasika
added.
The partnership also recognizes
the growing importance of sustainability. Businesses operating in green sectors
such as renewable energy, eco-tourism, and sustainable agriculture will benefit
from increased financing backed by AGF’s Green Guarantee Facility, demonstrating
both institution’s commitment to environmental sustainability.
Beyond financial support, Zenith
Bank and AGF are committed to empowering MSMEs with the knowledge and skills
they need to develop the capacity to expand their business. They will collaborate
to offer training workshops on financial literacy, business management, and
sustainable practices. These workshops will equip MSMEs with the tools needed
to navigate the market effectively, make informed decisions, and operate their
businesses efficiently.
Longstanding
tradition
This partnership builds upon
Zenith Bank's longstanding dedication to supporting MSMEs in Ghana. In October
2022, the Bank introduced dedicated MSME accounts and partnered with
organisations like the Development Bank of Ghana (DBG) and World Trade Center Accra
in collaboration with Alibaba to expand market access.
Furthermore, the Bank has collaborated
with the German Sparkassenstiftung for International Cooperation (GIZ) to
provide access to finance training and partnered with VISA to roll out the
Zenith SME Business card to serve the business needs of
SMEs and improve their business efficiency and productivity.
These initiatives demonstrate
Zenith Bank's unwavering commitment to fostering an environment where MSMEs can
flourish and contribute meaningfully to the Ghanaian economy.
By combining their expertise and
resources, Zenith Bank Ghana and AGF are creating a powerful ecosystem that
empowers MSMEs in Ghana to overcome challenges, unlock their full potential,
and become the driving force of economic growth and prosperity.