Policy
The SFFL policy document is referred to in the company regulations and is the guiding policy statement for the company. It states the following:

SFFL will achieve the long term sustainability of its operations by following a market approach whilst engaging in a coordinated and collaborative basis with the other developmental activities implemented by SPEED. It will carry out its activities in a manner which reflects the following WIDER aims:

  • Improvement in the access of MSME financial institutions to re-financing and risk-sharing instruments on a commercial and sustainable basis
  • Contributing to employment and income generation within the MSME sector, particular the productive and service sectors
  • Achieving greater balance between male and female owned and/or managed enterprises
  • Increased outreach by SFFL to all the economically viable areas of Ghana with a focus on the Northern and rural areas
  • Improvement of governance and transparency in the financial sector
  • Raising awareness on environmental issues and HIV/AIDS programmes

Operational policy

  • SFFL targets to achieve national outreach with at least 50% of funds committed to Northern and rural areas.
  • The credits financed by SFFL are targeted on a majority basis at growth oriented MSMEs in the productive or services sectors rather than the trade sector. It is aimed at a non-trade share of 40% in rural areas and 60% in urban areas.
  • The lending to any one participating financial institution is in the target range of GH¢100,000 to GH¢300,000 with no one financial institution representing more than 20% of the portfolio value
  • To protect the real value and the sustainability of SFFL, the interest level is to be set at not less than the Bank of Ghana prime rate

Participating Financial Institution policy conditions

  • Willingness to cooperate with SPEED and a commitment to good governance and transparency are a prerequisite to applying to SFFL for financial support.
  • The credits financed by SFFL are to be socially balanced, e.g. the share of credits to enterprises owned and/or managed by women is targeted at 50%
  • The maximum size of individual enterprise credit supported by SFFL lending is set at GH¢50,000. However, group lending can be at a higher level in accordance with the approved lending procedures of participating financial Institutions.
  • The term of individual credits to the clients of the participating financial institution is to be matched to SFFL lending.

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