Funds running into several thousands of Ghana cedis may not be recovered anytime soon by the Microfinance and Small Loans Center (MASLOC) as authorities say an outbreak of Coronavirus in the country has halted activities of the center responsible for supporting Small and Medium scale Enterprises (SMEs) in the country.
According to MASLOC, it will struggle to disburse loans to companies that may genuinely be in need of the agency’s support scheme due to its inability to recover earlier disbursed loans to beneficiaries.
This comes at a time when businesses in Ghana, particularly SMEs, are struggling to stay afloat as the COVID-19 pandemic bites. In the United States of America for instance, more than 9 million jobs have been lost in the past three weeks alone, compelling the US government to pass a 1 trillion dollar stimulus package to largely support businesses and cushion the economy. Other countries have also cut back on taxes, reduced electricity tariffs among a host of other interventions all in a bid to help businesses survive the impact of the coronavirus.
Here in Ghana, the government has announced a 1 billion cedi stimulus package aimed at supporting businesses in this rather trying time. The move, though commended by many, may still not be enough to see businesses through this tsunami as some employers are hinting that they may be forced to lay some workers off if the situation does not improve anytime soon.
Speaking to ABC News‘ Fred Kwarteng on the sidelines of a Meet-the-Press briefing in Accra on Friday, Public Relations Manager for the Microfinance and Small Loans Center, Fredrick Ohene Offei Addo says though MASLOC is keen on helping businesses, it’s currently constrained by the existing situation the country finds itself in.
