€2.5bn Package For SMEs

from Modern Ghana

By Daily Guide

French President, Nicholas Sarkozy has announced a €2.5 billion package to revamp small and medium-scale enterprises (SMEs) in Ghana and other sub-Saharan African countries over the next five years.

The initiative, to be used to directly or indirectly finance nearly 2,000 companies and create 300,000 jobs, is part of the total French bilateral financial commitment to sub-Saharan African nations for the time-frame. It also forms part of France’s three tier component funding programme.

The total amount involved in the bilateral commitment would thus be €10 billion covering a five-year period.

Addressing the South African Parliament over the weekend, he said, “We are going to create a €250 million investment fund to acquire holdings in other mixed or thematic funds in order to develop African businesses.”

He added that the second component of the programme would be the creation of a guarantee fund, which will likewise have a €250 million endowment to facilitate access to bank credit and capital for African SMEs.

“The third tier will be the doubling of the activity of the French Development Agency in support of the private sector, with a €2 billion commitment,” he indicated.

The French President stressed that he would see to the full contribution of his country to actively fight poverty in Africa.

“France will maintain her financial commitment for the achievement of the Millennium Development Goals and also work in a targeted way to foster accelerated economic growth which will contribute directly to the creation of African companies that will generate jobs.

“Africa which bears 24 percent of the world’s burden of illness has only 3 percent of its health-care personnel. How are you going to treat your sick if all the doctors you train leave and come to our countries to try and find a development they can’t find at home?” he questioned.

“We need to put an end to the brain drain.”
President Sarkozy also entreated the international community to mobilize and fight against trafficking which exploits the poverty of the hapless human beings who feel their only hope is to leave their country.

By Patrick Ampong-Baidoo