Accra, 02 October 2023 – The Development Bank Ghana (DBG) has added Sinapi Aba Savings & Loans Ltd to its list of strategic partners through who it lends to local businesses. DBG since commencing operations in June 2022 has been forming strategic alliances with key Participation Financial Institutions (PFI) including universal banks in order to be able to support the Micro, Small and Medium Enterprises (MSMEs) sector.
Sinapi Aba is the first Savings & Loans company to be onboarded as a PFI by DBG owing to the former’s rich, credible, and trusted reputation in delivering proven financial services to MSMEs and individuals who may have limited access to traditional banking services.
The partnership between the two institutions will afford DBG the opportunity to tap into Sinapi Aba’s network of forty-four branches located in 14 of the 16 regions of Ghana. This will further offer DBG the window to reach the 65 percent of Sinapi Aba Saving & Loans’ customers who are in the rural areas and to support with much-needed long-term capital to bring about business growth and expansion. Sinapi Aba on the other hand will receive wholesale capital which it will on-lend to its base of MSME customers, majority of whom are in the rural areas as patient-capital.
Highlighting the relevance of the partnership, Mr. K. Duker, Chief Executive Officer of Development Bank Ghana, indicated that the partnership with Sinapi Aba allows the Bank to reach an untapped target group, which are the grassroot businesses who are also a vital component of the whole MSME sector. According to Mr. Duker, the partnership will among many other benefits bring about enhanced access to financial support to local businesses, business growth opportunities, capacity building, and preservation of livelihood especially among the lower-income strata communities.
In his remarks, Mr. Anthony Gyasi Fosu, CEO of Sinapi Aba Savings and Loans, who, together with his management team, paid a working visit to the office of DBG, also mentioned that the alliance with DBG opens a new door of offering long-term patient capital to the numerous local businesses who desire facilities with longer time span to allow them grow their businesses and return value to their stakeholders. He also added that “the acknowledgment by DBG of Sinapi Aba’s pivotal role in the noble mission of building lives through financial inclusion and empowerment stands as a profound endorsement of our enduring commitment spanning 29 years. This recognition underscores our capacity to broaden financial access across a more extensive market, augmenting our capacity to provide enhanced financial solutions.”
Sinapi Aba Savings and Loans Ltd. has been licensed and supervised by the Bank of Ghana since 2013. Sinapi Aba is committed to providing innovative financial solutions and training to entrepreneurs in MSMEs in Ghana to improve their business and enhance income-generating opportunities for the economically disadvantaged to improve their standard of living and positively transform their lives. The company focuses on Agriculture, Business, Housing, and Education.
DBG is a Development Finance Institution established by the government of Ghana to facilitate and strengthen long term financing to the Ghanaian businesses along with delivery of appropriate non-financial services to strengthen the ecosystem in which businesses operate. The Bank ensures that sustainable and global best practices are applied across all of its operations.