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$50 Million pledged for small business investment
The African Development Foundation and the Government of Ghana have signed an agreement to provide up to $50 million in expansion capital to 200 Ghanaian small- and medium-sized businesses over five years.
WASHINGTON - June 15, 2005
The African Development Foundation (ADF) and the Government of Ghana have signed a new strategic partnership that will significantly expand ADF’s resources to deliver direct investment and technical assistance to Ghana’s small business sector. The new five-year agreement will provide up to $10 million annually to finance up to 40 new business investment projects per year.
The Honorable Kwamena Bartels, Ghana’s Minister for Private Sector Development, signed the agreement with ADF President Nathaniel Fields and ADF Board Chair Ward Brehm in a ceremony at the Willard Hotel in Washington, DC. Bartels, Fields, and Brehm later met with President John Kufuor of Ghana, who expressed strong support for the strategic partnership. President Kufuor was in Washington to attend a meeting of African heads of state with President George W. Bush.
ADF and the Government of Ghana have each committed to providing up to $5 million per year to finance new business expansion projects under ADF’s business investment program, which provides individual Ghanaian businesses with financing and technical assistance valued at about $250,000.
The strategic partnership agreement builds on a five-year investment compact that ADF and Ghana signed in November 2002. At that time, each party agreed to commit $1 million annually to business investment projects benefiting 8 Ghanaian-owned businesses per year. The revised agreement will increase total investment in ADF’s business investment program by up to 400 percent and provide up to $50 million in direct investment to 200 Ghanaian-owned small- and medium-sized businesses between 2006 and 2010.
Each business will receive expansion capital and management, marketing and technical assistance provided by ADF.
“The image of the United States as an effective development partner is greatly enhanced by strategic partnerships like ADF’s business investment program. It is a partnership that works well in Africa,” said Minister Bartels.
President Fields thanked the Government of Ghana for its support for ADF’s business investment program, noting, “Ghana has created a positive environment for small business growth, and our agreement underscores America’s commitment to helping Ghana make the dream of prosperity a reality in the 21st century.”
ADF provides financing for business expansion across the continuum of small- and medium-sized enterprises in Ghana, including:
Agricultural Producer Groups and Small Agro-Processors. ADF investment stimulates growth in the agriculture sector by helping small farmers and agri-business processors access regional and international markets, cultivate new products and achieve international quality standards.
Early Stage Small and Medium Businesses. Manufacturing, services and technology companies with high potential for growth receive ADF operating assistance grants, seed capital, and management, marketing and technical assistance to support them through early-stage business expansion and growth. The support is designed to help African-owned businesses develop new products, expand production and build capacity to become globally competitive and attractive for investment by private investors.
Established, Later Stage Growth Companies. ADF helps Ghanaian businesses that have demonstrated high growth potential achieve access to additional streams of commercial financing and venture capital.
Recently funded business investment projects in Ghana have included:
- Afrique Link of Wenchi, a processor of canned and pureed tomatoes;
- Barbex Technology of Adomfe, a producer of essential oils;
- Bosbel Vegetable Oils of Tamale, a processor of soybean oil and shea butter;
- Elsa Foods of Tema, a maker of instant fufu flour;
- General Mills Company of Kumasi, a manufacturer of processed maize for Ghana’s major breweries;
- Getrade Ghana, an Accra-based producer of traditional products that is developing a traditional soap line;
- SAL Tilapia near Akuse, an aquaculture facility that cultivates and harvests tilapia; and
- Woodhouse Company of Madina, a specialty maker of school furniture.
The African Development Foundation (ADF) is a United States Government agency dedicated to expanding access to economic opportunity in Africa. Over the past 20 years, ADF has funded 1,600 projects in support of African entrepreneurs and local African communities. For more information on ADF, its programs and its application guidelines, go to: www.adf.gov/funding.html.