Editorial: 24-hour Economy mobilises financial resources for productive sectors

The US$500million financing agreement signing between the 24-Hour Economy Plus (24H ) Programme Secretariat and Arab Bank for Economic Development in Africa (BADEA) represents one of the most tangible steps yet taken in government’s agenda for mobilising more than US$4billion over five years to operationalise the programme.

Hosted at the Bank of Ghana (BoG) headquarters in Accra, the Memorandum of Understanding (MoU) paves the way for releasing up to US$60million as part of the first tranche channeled through the Development Bank Ghana (DBG) as anchor institution for on-lending to small- and medium-sized enterprises (SMEs).

Other domestic banks and non-bank financial institutions are expected to participate in subsequent phases. BoG’s Second Deputy-Governor, Matilda Asante-Asiedu, described the partnership as a critical milestone in aligning long-term finance with Ghana’s structural transformation agenda.

“The Bank of Ghana welcomes BADEA’s commitment and we stand ready to provide any regulatory oversight necessary to ensure these resources are channeled effectively into productive sectors of the economy,” she added.

The agreement was signed in the presence of a high-level BADEA delegation led by President Abdullah KH Almusaibeeh – accompanied by Dr. Fatima Farouk Elsheikh El Toun, Secretary General of the Boards of Governors and Directors, as well as other senior officials.

“BADEA has historically stood with Ghana, whether during cocoa syndications or in the difficult period of COVID-19 pandemic. This partnership marks a new phase, one in which BADEA commits not only funding but also long-term support for Ghana’s ambition to build a more diversified, inclusive and export-ready economy,” the president stated.

BADEA’s president added that the bank’s financing windows will target agriculture, logistics, human capital and green investment, aligning closely with thematic priorities of the 24H Programme.

Under the facility, concessional loans will be provided at interest rates below 12 percent, with repayment periods of five to seven years. Products will include working capital, asset finance, warehouse receipt loans, input financing, invoice discounting and climate-aligned finance.

An accompanying equity fund is also planned to support growth-stage enterprises, particularly those led by youth and women.

To mitigate risk, the facility will be backed by credit guarantees and insurance schemes developed in collaboration with the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL) and other partners.

By 2030 the facility is projected to mobilise more than US$18billion in SME financing, strengthen agro-processing and logistics value chains and build a pipeline of investment-ready enterprises.

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