[Accra, Ghana, 21 November 2024] – The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in collaboration with AdvansGhana Savings and Loans, is launching the Follow-On Finance Initiative under the WIDU.africa project, a platform funded by the German Federal Ministry for Economic Cooperation and Development (BMZ). This partnership will provide affordable financing options for Ghanaian entrepreneurs who have successfully participated in the WIDU.africa project, helping them scale their businesses, create jobs, and increase income opportunities.
WIDU.africa, commonly known as "The Support Platform for Micro- and Small Businesses in Africa and in Collaboration with the Diaspora in Europe," has been active since 2019. By combining coaching with funding from the African diaspora in Europe and GIZ, the platform has supported over 6,000 businesses across Africa, leveraging diaspora remittances to foster economic growth and job creation. In Ghana alone, nearly 3,000 jobs were created and sustained through WIDU’s support.
The newly launched Follow-On Finance Initiative builds on this success. Through a pilot phase set to begin this month, about 90 entrepreneurs who have previously received WIDU support will have access to specially developed loan products with favorable terms. These loans, backed by AdvansGhana’s expertise in MSME financing, will provide both working capital and investment support, creating a pathway for entrepreneurs to move beyond initial grant-based assistance.
Key Features of the Follow-On Finance Initiative
The initiative offers a comprehensive support package for growth-ready WIDU entrepreneurs, including:
Targeted Loan Products: Entrepreneurs will gain access to working capital and investment loans at rates more favorable than standard market terms, providing the flexibility needed to grow and sustain their operations.
Extensive Business Coaching: WIDU coaches will work closely with entrepreneurs, from loan feasibility assessments and application support to monitoring the effective use of funds and offering guidance on scaling business operations.
Data-Driven Monitoring and Impact Assessment: Regular follow-up sessions will track loan utilization and business impact, ensuring transparency and support that aligns with the initiative’s goals of job creation and income growth.
Pilot Program and Future Rollout
This pilot phase will set the foundation for a larger-scale rollout, with the impact of the loans and coaching carefully monitored and assessed. If successful, the Follow-On Finance Initiative will extend to a broader group of WIDU entrepreneurs, scaling its impact and reaching more growth-ready businesses across Ghana.
How to Participate
Eligible WIDU entrepreneurs can expect to be contacted by WIDU coaches to initiate the application and assessment process.
About GIZ
As a provider of international cooperation services for sustainable development and international education work, GIZ is dedicated to building a future worth living around the world. GIZ has over 50 years of experience in a wide variety of areas, including economic development and employment, energy and the environment, and peace and security. We work with businesses, civil society actors, and research institutions, fostering successful interaction between development policy and other policy fields and areas of activity. The German Federal Ministry for Economic Cooperation and Development (BMZ) is the main commissioning party. Currently, GIZ promotes sustainable development in Ghana via programmes and projects. Activities currently cover three priority areas: Responsibility for our planet – climate and energy: renewable energy and energy efficiency; Training and sustainable growth for decent jobs; and Peaceful and inclusive societies, good governance. For more information, please visit: https://www.giz.de/en/worldwide/324.html
About AdvansGhana Savings and Loans
With a strong commitment to supporting MSMEs, AdvansGhana offers a range of financial products to meet the needs of Ghana’s small business sector. Serving over 120,000 clients through 19 branches across Ghana, AdvansGhana is dedicated to fostering sustainable business growth and providing financial inclusion to communities. For more information please visit: https://advansghana.com/