Summary of Proposed Investment
Project Number
25757
Company Name
ECOBANK GHANA LTD
Date SPI Disclosed
Sep 24, 2007
Country
Ghana
Industry
Financial Markets
Projected Board Date
Oct 25, 2007
Status
Completed
Sector
Commercial Banking - Microfinance and Small Business
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 4, 2008
Signed : Nov 27, 2008
Project Description
This is a joint project involving IDA, IFC and the Government of Ghana (GoG), consisting of a Risk Sharing Facility (RSF) of up to the local currency equivalent of $6.25 million ($12.5 million portfolio size) for Ecobank Ghana Ltd (EBG) to be used to support lending to Small and Medium Enterprises (SME).
The RSF will cover up to 50% of the credit risk of Ecobank’s portfolio of new SME loans, with IDA funds of up to $1.25 million covering up to 10% of the first loss risk. Ecobank will assume the 50% of the balance of the credit risk of the portfolio.
In addition to the guarantee, the project envisages two technical assistance (TA) components:
- TA to Ecobank, with the objective of transferring the necessary skills and procedures to better service the SME sector and thus enhance the banks’ capacity to underwrite new SME loans on a profitable and sustainable basis; and
- TA to SMEs, which aims to help bridge the gap between the SMEs and the banks by providing some basic financial and management training to the SMEs.
The RSF will cover up to 50% of the credit risk of Ecobank’s portfolio of new SME loans, with IDA funds of up to $1.25 million covering up to 10% of the first loss risk. Ecobank will assume the 50% of the balance of the credit risk of the portfolio.
In addition to the guarantee, the project envisages two technical assistance (TA) components:
- TA to Ecobank, with the objective of transferring the necessary skills and procedures to better service the SME sector and thus enhance the banks’ capacity to underwrite new SME loans on a profitable and sustainable basis; and
- TA to SMEs, which aims to help bridge the gap between the SMEs and the banks by providing some basic financial and management training to the SMEs.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Head SME,
Ecobank Ghana Ltd
19, Seventh Avenue
Ridge West
P.M.B , GPO
Accra, Ghana
Tel: (233)-21- 681146-8, 680426-7, 681166
Dir: (233)-21- 681182
Ecobank Ghana Ltd
19, Seventh Avenue
Ridge West
P.M.B , GPO
Accra, Ghana
Tel: (233)-21- 681146-8, 680426-7, 681166
Dir: (233)-21- 681182
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster