GWYESCO Launches 8% Interest Loan Scheme for Five Northern Regions

The Ghana Women and Youth Employment and Social Cohesion (GWYESCO) Programme, a government initiative funded by the African Development Bank and implemented by the Social Investment Fund (SIF), has been launched to support women and young people across Ghana’s five northern regions.

The programme covers the Savannah, North East, Upper East, Upper West and Northern regions, with a focus on addressing unemployment and creating sustainable livelihood opportunities for vulnerable groups.

It targets young people aged 18 to 35, particularly those not in employment, education or training (NEETs), who are considered vulnerable to extremist recruitment, as well as women and persons with disabilities.

Speaking in an exclusive interview with JAKPA MULTIMEDIA, the Chief Executive Officer of the Social Investment Fund, Mr Abbas Nurudeen, said loan applications would be processed in partnership with ARB Apex Bank, GCB Bank and Consolidated Bank Ghana (CBG).

According to him, the participating banks would assess applicants’ creditworthiness and business needs to determine appropriate loan amounts.

“Somebody may apply for GH¢20,000 to sell water, but you don’t need GH¢20,000 to sell water. So, they will assess your creditworthiness, determine the amount you need and tailor it towards your needs so that repayment does not become a problem,” he explained.

Mr Nurudeen added that successful applicants would undergo business development and financial literacy training before the loans were disbursed.

8% Interest Rate: Mahama’s Gift to Northern Ghana

Mr Nurudeen described the GWYESCO Programme as one of President John Dramani Mahama’s greatest gifts to Northern Ghana, noting that it was designed to equip women and young people with the skills, start-up capital and toolkits needed to establish and grow businesses.

He explained that the programme was being executed by the Ministry of Finance and implemented by the Social Investment Fund to expand access to affordable credit and promote economic empowerment.

Under the scheme, beneficiaries will enjoy an interest rate of 8 per cent, significantly lower than the approximately 25 per cent charged by some commercial lenders, alongside a loan repayment period of 12 to 24 months and a three-month moratorium.

He said the funds would leverage existing Village Savings and Loan Association (VSLA) systems, with monitoring teams operating at the grassroots level to ensure effective implementation.

The loans, he added, would be managed through a revolving fund to enable more beneficiaries to access support over time.

“Not everybody can be employed in the public sector, and not everybody can be recruited into the military. But people have businesses they are doing that, if you help them with access to cheap credit, they will be able to be employed and possibly absorb others who are unemployed,” he noted.

GWYESCO Is for the Last Mile — Jaksally

The Executive Director of Jaksally Development Organization, Mr Seidu Jeremiah, said his organisation had operated in the North East Region since 2008 and had trained several VSLA groups that were ready to benefit from the initiative.

He expressed the organisation’s willingness to partner with the Social Investment Fund to ensure that the programme reached underserved communities, particularly people who might not have access to formal employment opportunities.

Mr Jeremiah described GWYESCO as a national government initiative intended to support people at the grassroots level, including those unlikely to secure corporate, public-sector or other white-collar jobs.

He said access to affordable financing could significantly improve local businesses, particularly those engaged in shea butter, cassava and groundnut processing.

“If a unit or a group gets about $300,000 into their shea processing, into their cassava processing, into their groundnut processing, it is going to really help them. They will be able to buy more, create jobs for farmers, employ young people to process the products and expand their capacity to supply or export,” he stated.

According to him, the initiative has the potential to create jobs not only in rural communities but also across entire agricultural and agro-processing value chains.

Mr Jeremiah disclosed that Jaksally’s main operational base was in the Savannah Region, although the organisation also worked extensively in the North East Region.

He cited the organisation’s work with VSLA groups in hard-to-reach communities such as Yagaba, which he said was currently cut off, as evidence of the need to extend development interventions to underserved areas.

“As Ghanaians and a Ghanaian NGO, we need to support it and make sure that it reaches the people that it has to reach. We are in the rural areas; we are in the hard-to-reach areas,” he added.

Northern Women Need More Support — Beneficiary

A beneficiary, Madam Andalla Karim, welcomed the programme and expressed hope that it would improve the livelihoods of women and other community members.

She pledged to share information about the initiative with people who were unable to attend the launch, ensuring that more potential beneficiaries became aware of the opportunities available.

Madam Karim appealed to the government to sustain its attention on rural communities, particularly women in Northern Ghana, whom she said continued to face significant economic challenges.

“We, the northerners, the women, are suffering a lot. We should continue to think about it and help us. Give us more support because I know there are more opportunities they are planning to bring, but they are not here yet,” she appealed.

She expressed hope that the government would continue to prioritise women in rural communities and introduce more interventions to improve their economic circumstances.

The GWYESCO Programme is expected to provide a pathway for women and young people in the five northern regions to access affordable financing, strengthen existing businesses, establish new enterprises and contribute to job creation and local economic development.

Source: ghanawatchonline.com/Salifu Adam Jabu