The Business Sector Advocacy Challenge (BUSAC) Fund is to disburse US$16 million in loans to over 500 businesses in the small and medium scale enterprises sector in its phase-two project, beginning August 2010, B&FT has gathered.
The disbursement is to facilitate the development and growth of a competitive, vibrant private sector.
The Fund last year disbursed US$8.2 million to 362 businesses in all the 10 regions in the first phase of its operation that began in 2004.
The project is being jointly funded by Danish International Development Assistance (DANIDA), Danish Fund for International Development (DFID) and the United States Agency for International Development (USAID), and aims to broaden the engagement of the Private Sector in its policy formulation and advocacy to promote growth and a vibrant private sector.
Dr. Dale Rachmeler, BUSAC Fund Manager, in a recent interview with B&FT said: “DANIDA has indeed gone forward to design the BUSAC Fund II, which will aid in the bidding process for the next phase of BUSAC disbursement.
“The entire project will still deal with private sector advocacy - and all the sectors within will be able to submit proposals for funding on a competitive basis. With the expected amount, there will be more funds for grants in phase-II than in phase-I,” he emphasised.
He revealed that a lot of businesses do not belong to associations, making it difficult to receive financial assistance for business growth.
Ms. Hannah Tetteh, Minister of Trade and Industry, commended the impressive performance of the Fund which has contributed immensely to growth in the economic sectors of the country.
“There has been clear evidence of growth and development in the private business sector, more especially among Small and Medium Scale Enterprises (SMEs) over the past few years due to the immense financial and technical assistance from the BUSAC Fund.”
She applauded management of the Fund for implementing the support system to improve the performance of public and private sector businesses in the country.
Ms. Tetteh said the Fund had performed a very useful task by way of empowering SMEs to sensitise government on the various constraints and challenges that confront the sector, leading to various changes and amendments of policies and programmes to address their demands.
“The private sector seemed to be driving government policies and programmes; I hope that there will be enough funding to support a second-phase of the project. This would help bring on board new players and also extend the facility to others,” she said.
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