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Ghanaian investors unhappy with World Bank
Masahudu Ankiilu Kunateh, Ghanadot
Accra, May 25, Ghanadot -
Beneficiaries of the Micro Small Medium Enterprises (MSMEs)
project, who are mostly local investors within the agribusiness,
garments, tourism and construction industry, have expressed
their dissatisfaction with the level of commitment shown by the
World Bank (WB) towards the project.
According to the local investors, the inability of the WB in
agreeing with the local banks on the actual interest rate to be
charged for giving out loans to the various sectors under the
project, has caused major setbacks in the implementation of the
project.
According to them, the banks were more willing and committed to
giving out loans to operators of service
sectors of the economy, rather than the manufacturing and
production sectors of the country.
The local investors disclosed this during a day’s regional tour
workshop for the Greater Accra and Eastern regions held in
Accra.
The MSMEs project is one of the ten pilot projects supported
under the International Development Agency (IDA) /International
Finance Corporation (IFC) for Africa, aimed at increasing the
competitiveness and employment levels of the country’s MSME’s
sector.
The project is designed to provide a comprehensive package of
support to SMEs, which forms 92 per cent of businesses in the
Ghanaian private sector.
However, because of the inconsistence mounted between the WB and
local banks, the mid-term review for the 24 months, to be held
June 2008, could not take place, which delayed the actual
implementation of the project.
Meanwhile, the local investors have also admitted that
consultants contracted were not able to assert the reasons why
loans and grants were needed in the expansion of various
sectors, which also contributed to the slow pace at which the
disbursements of loans were issued.
They further called on the WB to assist them contract
consultants with high levels of competency in spelling out their
needs, and also future projections realistic enough in having
access to loans and grants.
The local investors also called on the WB to come to agreements
with the banks on the required interest rate in giving out the
loans.
On the part of an official of the MSME project, Mr. Alex Aning
stated that the disbursement made so far till date, accrual to
$2.2 million out of $4.5 million meant for the project, and
further called for a one year extension of the project.
Mr. Aning disclosed that 295 applications were received, and out
of that, 98 applications were approved loans and grants, adding
that “A total of 227 companies were supported, while 65
companies were not eligible.”
He stressed that one major of the setbacks to the slow
disbursement of the loans, was the inability of consultants of
the local investors to spell out the needs of applicants.
“The consultants should be able to spell out why
the investor has not done well previously, and also the
strategic plan to expand and create employment for the future,”
Mr. Aning added.
Ghanadot
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