DBG, Proxtera to make available US$100m digital loans to Ghanaian SMEs

Small and Medium-sized Enterprises (SMEs) operating in Ghana’s agriculture, manufacturing, Information, Communications and Technology (ICT), and high-value sectors are to benefit from some US$100 million loan through a digital platform.

This is being made possible through a partnership between the Development Bank Ghana (DBG) and Proxtera, a Singaporean fintech company that aims to simplify cross-border trade and uplift SMEs through digital platforms.

Through this venture, DBG would provide beneficiary SMEs loans for growth and expansion, enabled by digital means by Proxtera.

The partnership was formalised by the two entities on the margins of the ongoing 3iAfrica Summit in Accra on Tuesday, May 14.

Mr Duker stated that for SMEs to qualify for the loan, it should be a Ghanaian-owned and working in the country, and its financial plan, deemed bankable.

Engaging the media after the short event, Mr Kwamina Duker, Chief Executive Officer (CEO), DBG, said the Bank had development stemmed from their belief that a more digitised way of lending has become necessary in this era.

He explained that while the Bank, through wholesale and rural and community is able to check the credit portfolios and other requirements for SMEs to get loans from them, the online platform would make it faster and easier.

“This platform allows that process to be much quicker, and effective, and as a result of that, the risk premium of the interest rate being applied to SMEs, will over time come down,” he said.

“If today, it takes about three to six months to get a loan, with a huge amount of documentation, and we can cut that down to turnaround of literally a real time of 24 hours… then we can appreciate the benefits of digitalisation,” Mr Duker said.

He stated that because no one bank could bridge the huge financing gap of SMEs, the bank was serving as a catalyst to de-risk the environment for other banks to also support SMEs with affordable loans for their operations, and to create jobs for the Ghanaian youth.

Mr Duker said that the Bank had done so in the rubber sector, making other banks to gain the confidence to provide loans to companies in that sector, and initiated similar step in the rice sector.

Mr Saurav Bhattacharyya, CEO, Proxtera, stated that they would through their technological platform build a credit engine for SMEs to be evaluated quickly for the disbursement of loans.

He stated that Ghana is the fourth country to benefit form their platform, which he expressed confident that would help solve the access of credit challenge of Ghanaian SMEs.

ABOUT PROXTERA:

Proxtera is creating the global open digital ecosystem of MSMEs (micro, small and medium enterprises) with trusted credentials that help them gain access to trade opportunities and financial services for greater growth.

Proxtera’s mission is to transform business-to-business trade using technology to make marketplaces efficient and discoverable globally and to enable holistic cross-marketplace and cross-border trade leveraging on trusted credentials to improve financing, fulfillment and empowerment.

Proxtera was launched at the end of 2020 as the operationalisation of the Business sans Borders (BSB) initiative by MAS and the Infocomm Media Development Authority (IMDA). BSB seeks to develop a collaborative global digital infrastructure that would help to increase cross-border trade opportunities and enhance digital and financial inclusivity for MSMEs in the underserved global B2B e-commerce market space.

https://proxtera.com

ABOUT DEVELOPMENT BANK GHANA (DBG):

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.

For media enquiries, please contact:

Sheba Safo-Adu
Communications and Investor Relations
Email: media@dbg.com
More information available at: www.dbg.com.gh