USD 100M Allocated to Support MSMEs via the Ghana Integrated Financial Ecosystem

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The Bank of Ghana (BoG), the Development Bank Ghana (DBG) working with its digital partner Proxtera and supported by the Monetary Authority of Singapore (MAS,) is excited to announce the target of US$100 mn to be disbursed to the Ghanian MSME ecosystem through the Ghana Integrated Financial Eco-system (GIFE).

Against the backdrop of the 3i Africa Summit sessions today, an announcement was made during a signing ceremony between DBG and Proxtera to accelerate the disbursement of up to 1.83 billion Ghanian Cedis via the wholly digital infrastructure set up by the GIFE programme. This follows on the early signs of success exhibited by GIFE after its launch at the 2022 edition of the Singapore Fintech Festival and its operationalisation in the first half of 2023 with the pilot financial institution partner – Consolidated Bank of Ghana .

GIFE currently is a digital journey for MSMEs, beginning with a financial literacy/creation of trusted credentials which leverages the global Universal Trusted Credentials framework, access to working capital, and cross-border trade with Asia and the ASEAN region. An innovative, regulatory sandbox, continues to support GIFE in its challenge to traditional disbursal frameworks to fast-track growth and development for local businesses. This upcoming phase of GIFE will see wider participation by more financial institutions with an emphasis on scale and digital access to global trade markets with local financial and educational support.

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Saurav Bhattacharyya, Chief Executive Officer of Proxtera, said “”We continue to proudly support GIFE as a founding partner. As the exclusive operational partner of SME Financial Empowerment (SFE) programme, and the operational, technology and digital infrastructure provider for implementation for GIFE, Proxtera continues to work with local ecosystem partners to grow the usage of trusted credentials. We strongly believe the ambitious target set by our partners will propel Ghanaian MSMEs into the global digital cross-border trade and financial highways”

K Duker, Chief Executive Officer of DBG, said: “We are excited about this partnership, especially for what it brings as part of the 3i Africa Summit. At DBG, we believe that this partnership with the Monetary Authority of Singapore and the GIFE programme mark a pivotal moment in DBG’s mission to provide sustainable finance solutions to Ghanaian businesses and facilitate multi-generational, sustainable economic growth. DBG recognises the crucial role of SMEs in our country’s economy and the GIFE programme will further strengthen DBG’s ability to catalyse SME growth by ensuring that they get the financial solutions they need to achieve their full potential. SMEs are a key pillar of Ghana’s economic resilience, prosperity, and international competition, so I’m optimistic that our journey to unlock their potential will yield excellent results for our people and country.”

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Dr Ernest K.Y. Addison, Governor of Bank of Ghana, said “This memorandum further demonstrates BoG’s commitment as a central bank, to working with key stakeholders to explore innovative financing models. It also further demonstrates our commitment to the Business Sans Borders initiative which we partnered with the Monetary Authority of Singapore to enhance MSME contribution to economic growth and in line with Government’s broader economic transformation goals.

Adding on to the comments, Mr. Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “MAS has worked closely with Bank of Ghana since the announcement of the Financial Trust Corridor in 2020.  The GIFE is an important step to foster closer collaboration between the two central banks and important emerging markets.  The GIFE is a rethink to potentially leapfrog traditional financial inclusion approaches with combined support mechanisms powered by smarter data that MSMEs and financial institutions can tap in based on their needs.”

Proxtera is an open and neutral hub connecting B2B marketplaces, service  providers, and trade associations digitally to simplify and amplify trade for small and medium enterprises (SMEs). Proxtera’s mission is to transform Business to Business trade using  technology to make marketplaces efficient and discoverable globally, to enable holistic cross border trade through services for financing and fulfilment, empowerment, and financial trust
building. Proxtera was launched in 2020 as the commercialization of the Business sans Borders  (BSB) initiative by MAS and the Infocomm Media Development Authority (IMDA). BSB seeks to  develop a global digital infrastructure that would help to increase cross-border trade  opportunities and enhance digital and financial inclusivity for SMEs in the underserved global B2B e-commerce market space. 

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DBG is a Development Finance Institution. In 2020, the bank received its license to operate from its regulator, the Bank of Ghana.

DBG’s mission is to:
Foster strong partnerships to finance economic growth, create jobs and build capacity for SMEs
Provide long-term financing and de-risking services, underpinned by technology and evidence-based research/insights
Attract, develop and retain exceptional people
Operate as an independent, financially sustainable world-class institution
Promote ESG excellence within the businesses we support
The Bank has received funds from the World Bank, European Investment Bank, Kreditanstalt Für Wiederaufbau (KfW) and the African Development Bank. DBG is a signatory to the UN Global Compact.

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