Friday, December 16, 2011

US$185m to support rural enterprises

The Rural Enterprise Programme (REP) has received US$185million to enhance the performance of micro-, small- and medium-scale enterprises in rural communities and improve livelihoods.

The programme, spearheaded by the Ministry of Trade and Industry, is funded by the African Development Bank and the International Fund for Agricultural Development (IFAD) with the basic aim of supporting small- and medium-scale enterprises, and getting more Ghanaians to acquire various marketable skills.

The programme, having gone through its initial pilot phase from 1995-2002 through to phase-two from 2002-2011 and to its current phase from 2012-2019, is expected to cover all the rural districts and work towards sustained development and growth of micro enterprises in the country.

As at September 2011, more than 106,000 project clients had been trained in community-based skills training, small business management and marketing -- compared with a target of 70,000.

In addition, over 23,000 new businesses had been established against a target of 21,000 in phase-two of the project.

Ms. Hannah Tetteh, Minister of Trade and Industry, inaugurating a 10-member steering committee to provide policy guidance and technical direction towards the implementation of the programme in Accra, said: “The programme was designed to create jobs, stimulate local economic development and improve the living conditions of people in the rural areas.

“Government is indeed satisfied that the implementation of phase-two of the programme, which has been successful in the establishment of small businesses, generating employment and creating income in 53 participating districts countrywide -- in addition to 13 districts which were carried over from the phase-one.

“The overall goal of the Rural Enterprises Programme is to improve the livelihoods and incomes of rural poor, micro and small entrepreneurs. The development objective is to increase the number of rural micro- and small-scale enterprises that generate profit, growth and employment opportunities.”

She added: “The medium- to long-term advantages of the programme include reinforcement of the national development agenda for job-creation and poverty-reduction in rural areas by drawing idle resources, particularly labour, into productive ventures and value activities.

“An increase in incomes of rural women would translate into greater family expenditures on education, health and good nutrition -- and would also contribute to enhance social standings within the communities.”

Ms Tetteh urged members of the steering committee to ensure effective management of the programme because the membership structure has been designed to reflect decentralisation and the mainstreaming of the promotion of micro- and small-scale enterprises at all levels within the district assembly system.

Mr. Nii Ansah-Adjaye, Chief Director, Ministry of Trade and Industry, and Chairman of the Steering Committee, said: “The effective development of the informal rural micro- and small- scale enterprises subsector is central to the successful implementation of policy in economic and social transformation of the rural environment, and improvement of the quality and dignity of life for our hardworking rural people.

“The group will be up to the task and help execute the programme’s objectives of providing policy and strategic direction in support of the Ministry of Trade and Industry,” he assured.

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