The Development Bank Ghana (DBG) has added Sinapi Aba Savings and Loans Limited to its list of strategic partners through which it lends to local businesses.
Under the partnership, DBG is supporting Sinapi Aba Savings and Loans Limited with a long -term funding of GH¢15 million to enable the latter to meet the financial needs of its customers.
DBG, since commencing operations in June 2022, has been forming strategic alliances with key Participation Financial Institutions (PFI), including universal banks, in order to be able to support the Micro, Small and Medium Enterprises (MSMEs) sector.
Sinapi Aba is the first Savings & Loans Company to be on board as a PFI by DBG, owing to the former’s rich, credible, and trusted reputation in delivering proven financial services to MSMEs and individuals who may have limited access to traditional banking services.
The partnership between the two institutions will afford DBG the opportunity to tap into Sinapi Aba’s network of forty-four branches located in 14 of the 16 regions of Ghana.
Sinapi Aba, on the other hand, will receive wholesale capital which it will to its base of MSME customers, majority of whom are in the rural areas as patient-capital.
Highlighting the relevance of the partnership at a brief ceremony in Accra on Mondaywhen the management ofSinapi Aba Savings and Loans visited the office of DBG, Mr K. Duker, Chief Executive Officer (CEO) of DBG, indicated that the partnership with Sinapi Aba would allow DBG to reach an untapped target group, “which are the grassroots businesses which are also a vital component of the whole MSME sector.”
According to Mr Duker, the partnership would, among many other benefits, bring about enhanced access to financial support by local businesses, business growth opportunities, capacity building, and preservation of livelihood, especially among the lower-income strata communities.
He said in the current difficult macroeconomic environment, it was important for DBG to step in to support businesses to build a vibrant and sustainable private sector businesses.
Mr Duker said the mandate of DBG was to help build a thriving and strong private sector by providing long-term capital.
Mr Anthony Gyasi Fosu, CEO of Sinapi Aba Savings and Loans, said the alliance with DBG opened a new door of offering long-term patient capital to the numerous local businesses whichdesired facilities with longer time span to allow them grow their businesses and return value to their stakeholders.
He also added, “The acknowledgment by DBG of Sinapi Aba’s pivotal role in the noble mission of building lives through financial inclusion and empowerment stands as a profound endorsement of our enduring commitment spanning 29 years. This recognition underscores our capacity to broaden financial access across a more extensive market, augmenting our capacity to provide enhanced financial solutions.”
BY KINGSLEY ASARE
