The Export Trade, Agricultural & Industrial Development Fund (EDAIF) has approved GH¢50million toward setting up the EDAIF Equity Fund, which will target investments into SMEs engaged in agro-processing, export trade and industrial development.
According to a press release from EDAIF, the Fund has also approved an additional GH¢52.3million to support Ghanaian businesses in line with the Fund’s mandate.
The release further noted that over the period from August to December 2015, the EDAIF Board approved financing facilities amounting to GH¢52.3million for beneficiaries in the public and private sectors of the Ghanaian economy.
The EDAIF Equity Fund, the release noted, will over the next five years support businesses that require long-term investments.
The fund will provide long-term catalytic capital with technical support where appropriate.
It will also provide investments to start-ups and early-stage companies and enterprises where short-term debt financing is inappropriate.
Equity financing in agro-processing will be extended to enterprises in crops and vegetable; fruit and juices; meat and dairy; and edible oils, the release stated.
In industrial development, enterprises engaged in packaging materials; apparels; woodworks and handicrafts; paper and pulp; and aluminium and metals will qualify for financing.
EDAIF is operating the Equity Fund with technical support from Venture Capital Trust Fund and through a Fund Manager, Oasis Capital Ghana Ltd., which will receive proposals from prospective applicants.
Management of EDAIF also explained in the release that approvals totaling over GH¢52.3million were made up of GH¢20.3million as Interest Free Repayable funds and GH¢13.2million as credit extended toward the purchase of equipment, tools and accessories for agro-processing; and GH¢5.7 million in grants toward rice, cashew and poultry production.
The remaining GH¢13.1million covered support for the EDAIF-sponsored Cassava and Mango projects which received GH¢8.6million and GH¢4.5million respectively.
The release further explained that support to cassava was for implementing Phase-1 of the Cassava Integrated Enterprise Development Project covering the Northern, Brong Ahafo and Ashanti Regions.
Financial support was approved to establish three processing factories, and over 1,000 beneficiaries received financial support to cultivate nearly 4,000 acres of cassava to feed the factories.
Approvals for the Mango project covered maintenance for existing farms of over 5,000 acres, and the cultivation of an additional 2,800 acres across the country.
Source: B&FT Online