Government announces poverty alleviation loans

More than 5.6 billion Ghanaian cedis (about US $7 million) in loans is to be distributed to 500 or more operations in the five poorest regions of Ghana under the Economic Sector Reform Programme, according to statement from the Ministry of Economic Planning and Regional Cooperation. The loans would be used to support micro enterprise activities in food production and agro-processing in the Upper East, Upper West, Northern, Eastern and Central regions, the five poorest regions depicted in the national poverty reduction strategy, the press release stated on Thursday. The allocations would supplement earlier disbursements to a number of districts in various parts of the country, it added. Under the programme, loans are to be distributed in areas of activity that need the support and can register "observable" impacts in reducing levels of poverty. Implementing institutions will follow a number of guidelines in selecting beneficiaries and identifying enterprises for support, according to the ministry's statement. The institutions would also be required to guarantee the payment of all funds they disbursed, as was the practice with all micro-finance activities under the Economic Sector Reform Programme, it said. The release said more than 500 operators were expected to benefit from the intervention, with the regional allocation of funds based roughly on the proportion of "very poor" people in the five regions.