Two Ghanaian banks have received development bank loans for on-lending to SMEs in the country.

HFC Bank has been given a US$10mn loan by the International Finance Corporation (IFC), which will support refined petroleum products and soft commodities, including rice and sugar. The loan is part of the IFC’s Global Trade Finance Programme.

Meanwhile, UT Bank has secured a US$20mn trade finance facility from the African Development Bank (AfDB). The 3.5-year line is the AfDB’s first trade finance activity in Ghana since 2009’s Cocobod transaction.

The loan will, again, be used to support SME trade finance and it’s hoped that it will facilitate around US$140mn worth of trade in raw materials, intermediate and finished goods and equipment.

The AfDB says in a statement: “This facility will therefore foster financial sector development, enhance regional integration through intra-African trade, and contribute to government revenue generation.”