Government plans to mobilise US$4billion for its 24-hour economy initiative by leveraging blended finance, pension funds and diaspora capital.
With a seed capital of US$300million, government expects to initiate its programme under the FUND24 framework. The remaining 90 percent is expected to come from private sources through a mix of equity, concessional lending and innovative instruments such as diaspora bonds.
The flagship programme aims to promote inclusive growth and job creation by extending economic activity beyond conventional working hours.
Dr. Ishmael Nii Amanor Dodoo, head of innovation, partnerships and markets at the 24-Hour Economy Secretariat, following a media engagement, told Business & Financial Times that the plan is anchored on two financing tracks: enterprise financing for SMEs and infrastructure financing through special purpose vehicles (SPVs).
Development Bank Ghana (DBG) will lead the enterprise finance track, managing a revolving fund worth between US$1billion and US$1.5billion. This facility will be extended to small and medium enterprises with concessional terms – interest rates below 10 percent and loan tenors of three to five years.
A grant component of 20 to 30 percent will be used to de-risk investments and support SME capacity-building to make projects bankable.
“This is patient capital,” said Dr. Dodoo. “We are not just lending; we’re building pipelines, strengthening governance and aligning SMEs along viable value chains.”
Credit: BFTONLINE