In the next three years, a group of nine banks will work with the government to offer finance to current youth-led businesses, resulting in the creation of one million employment.
The banks will assist existing youth-led enterprises with between GHc100,000.00 in operating capital and GHc500,000.00 in capital expenditure under the commercial program of the YouStart initiative. The interest rate will not exceed ten percent.
Ghana Commercial Bank (GCB), Consolidated Bank Ghana (CBG), Access Bank, Absa Bank, FBN Bank, ADB, Fidelity Bank, Ecobank, and Bank of Africa are among the participating institutions, according to Mr John Awuah, President of the Ghana Association of Bankers. He was optimistic that additional banks will join in the future.
According to him, the banking community was aware of the problems entrepreneurs encounter in obtaining credit, thus the initiative attempted to make lending criteria less strict in order for firms to expand and generate employment.
"The banking industry" Is persuaded that the government intends to foster young entrepreneurship in order to create an enterprising nation. "Our advantage is that we are already interacting with the private sector, so we have a reasonable understanding of everything that goes into making a firm run," he explained.
We are certain that, with the carefully structured conditions we are presenting and our arsenal of money, we can make it simpler for young people to access funds.
Mr Awuah stated that the initiative was accessible to established enterprises whose key movers were youngsters aged 18 to 40. Entrepreneurs over the age of 40 would have to show that 50% of their employees were between the ages of 18 and 40, and that 50% of their employees were SSNIT donors. They would also have to demonstrate that, if backed, their firms will be lucrative and produce jobs for young people.
"We don't want to build import-dependent firms," Mr Awuah added, stressing that "YouStart would not support any business that is involved purchasing and selling."
Young individuals with business ideas or those who have already established firms will be educated by experts at the Banking College, he added, through the commercial element of the YouStart program.
Beneficiaries who complete the program will be given assistance in obtaining product certification and quality assurance for their products and services, ensuring that their enterprises adhere to industry standards, rules, and laws.
Over the following three years, entrepreneurs will be trained, assisted with company development services, and funded.
Mr Awuah said a website will be developed soon to allow interested applicants to apply for the money. A potential candidate only has to fill out the application form. Successful candidates will be able to get funds "shortly after applying."
The commercial YouStart initiative will begin in the second half of June.
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