Purpose

Encourage financial institutions to increase lending to agriculture and renewable energy MSMEs by covering 50% of principal losses in case of default.

Eligible Clients

• Universal Banks with rural presence
• Rural and Community Banks (RCBs)
• Microfinance Institutions (MFIs)
• Savings and Loans Companies (S&Ls)

Target Beneficiaries

MSMEs in agriculture and renewable energy — especially women- and youth-led businesses
Focus: poverty reduction, inclusion, income growth, climate resilience, and decent work

Eligibility Criteria

• Minimum 5 years of operation
• Licensed by Bank of Ghana & compliant with capital/CAR
• ≥ 5% portfolio in agribusiness or renewable energy
• Positive financial performance trends
• Sound asset quality (NPL < 15%)

Loan Criteria

• Business loans to MSMEs for working capital or assets
• No refinancing, equity financing, or insider loans

Expected Outcomes

• Increased agriculture lending
• Greater gender and youth inclusion
• Increased renewable energy lending
• Employment and income growth in MSMEs
• Stronger ESG integration by partner institutions

Monitoring

On-site checks • Quarterly reports • Joint Steering Committee meetings

Claims Process

Trigger: Loan default
Submission: Within 60–180 days after final demand
Required Documents: Claims Form, Loan Agreement, Statements, Demand Letters, Recovery Evidence
Payment: Approved claims paid within 5 working days
Recovery: PFIs report recoveries → RDF reimbursed proportionally