Amenfiman Bank unveils GH¢500m collateral-free loan package for MSMEs

The Amenfiman Rural Bank PLC has introduced a GH¢500 million collateral-free loan package to support micro, small and medium enterprises (MSMEs) across the country.

The initiative was unveiled at the bank’s annual Customer First Engagement programme, dubbed “Special Time with Customers”.

The event, which celebrates customer loyalty and engagement, provided a platform for the bank’s leadership to reaffirm its commitment to fuelling the growth of MSMEs, widely regarded as the engine of Ghana’s economy.

The event was also used to launch the second phase of the AMERB MSME Donkomi Plus Promo in Kumasi recently.

Revolutionary MSME financing

Speaking at the launch, the Chief Executive Officer (CEO) of Amenfiman Rural Bank, Dr Alexander Asmah, emphasised that the initiative was built on the resounding success of the first phase of the AMERB MSME Donkomi Promo launched in 2024.

He stated that through the innovative loan scheme, deserving micro and small business owners could access up to GH¢1 million without the usual collateral security requirements — a major breakthrough in the country’s banking sector.

“We understand the critical role MSMEs play in driving economic growth and job creation. Our unique risk management strategy has allowed us to lend to this sector sustainably, achieving an impressive non-performing loan (NPL) ratio of just 1.79 per cent in 2024, compared to the industry average of 22 per cent,” Dr Asmah stated.

Statistics from the bank show that since the launch of the first phase of the AMERB MSME Donkomi Promo in mid-2024, over GH¢200 million was disbursed to micro and small businesses, with an outstanding 100 per cent recovery rate, a testament to the effectiveness of the bank’s lending model.

Strategic partnerships to expand impact

Dr Asmah also highlighted the bank’s collaboration with Development Bank Ghana (DBG), which had enabled the bank to extend long-term financing to MSMEs, particularly young entrepreneurs and women-led businesses.

“Through our partnership with DBG, we are prioritising businesses in manufacturing, agriculture and agribusiness, hospitality, information and communications technology (ICT), and other high-impact sectors to drive job creation and economic expansion,” he added.

Call to action

Addressing the audience, the Board Chairman of Amenfiman Bank, Dr Toni Aubynn, underscored the urgent need for stronger financial support for MSMEs.

“This sector contributes about 70 per cent of employment in Ghana, making it a crucial pillar of our economic recovery agenda.  Access to affordable credit and business development support remains their biggest challenge,” he said.

Dr Aubynn added that as a financial institution committed to the growth of small businesses, the bank had devised strategies to mitigate credit risks and provide the much-needed financial lifeline to small businesses.

Amenfiman Rural Bank PLC is one of the country’s largest rural banks, with total assets exceeding GH¢1.8 billion.

The bank made history as the first institution in the Rural and Community Banking (RCB) sector to mobilise deposits exceeding GH¢1 billion, currently holding GH¢1.5 billion in customer deposits.

Officials of the bank said the latest initiative reaffirmed the bank’s leadership in financial inclusion and its commitment to transforming the MSME sector.

“As the country continues its post-pandemic economic recovery, such bold interventions will be instrumental in empowering businesses, creating jobs, and driving sustained national development.

Micro and small business owners can now seize this opportunity to access hassle-free funding and scale their businesses to new heights,” the bank said in a statement after the launch.