1000 existing youth-led businesses will receive soft loans from the government by the end of this month through the National Entrepreneurship Innovation Plan (NEIP). The government is disbursing the loans in a bid to scale up the capacity of young entrepreneurs in the county.
The beneficiaries, between the ages of 18 and 45 years will receive GH¢100,000 each at a 10 percent interest rate over a period of two years.
The below-market rate of interest loans, worth GH¢100 million forms part of the government’s strategy to create an enabling environment for youth entrepreneurs, the Minister for Business Development, Dr Mohammed Awal said.
“We are creating an enabling environment for entrepreneurs to succeed and that is why the government has devoted US$10 million to support youth business programmes,” he added.
Dr Awal explained that the beneficiaries of the loan facility, selected from all the regions in the country had already gone through business development training and equipped with the required skills to turn the investment around.
“We have already trained 7000 young men and women across Ghana, this year and out of the 7000 we are supporting 1000 for the first phase with funding.
“We are not just giving them the money, but we will mentor them and hold them together so that within the next two years they will pay back the interest and the principal over the period of five years,” he said.
Last month, Ms Vannesa Aisha Limann who won the Presidential Pitch competition received a personal donation of GH¢25, 000 from the President, Nana Akufo-Addo as a sign of his government’s commitment to the development of entrepreneurship in the country.
The competition which was organised by the Ministry of Business Development involved over 2000 entrepreneurs. The winner received a GH¢50,000 investment package for her business while the first and second runner-up won GH¢45,000 GH¢40,000 each for their business pitches.
Credit: Graphic Online