Fidelity Bank Ghana Ltd (FBGL) and USAID/GHANA signed a US$3.9m agreement aimed at facilitating lending to Ghana’s health sector.
The agreement outlines a model to provide funding for potential borrowing entities under private health facilities, such as hospitals and clinics, accredited by the National Health Insurance Authority (NHIA) or those seeking NHIA accreditation.
Before partnering with Fidelity Bank, USAID used similar models in other African states to support sectors with high prospects for growth.
Since 1999, USAID has been designing and delivering alternatives to unlock financing for entrepreneurs in the developing world.
The partnership with FBGL improves accessibility to credit facilities for promotion of growth in the health sector which FBGL has shown commitment to supporting in past times. USAID’s Strengthening Health Outcomes through the Private Sector (SHOPS) program will provide direct support to both Fidelity Bank and borrowers under the proposed facility.
The agreement will help unlock new products that would facilitate health care financing in the country and address the high cost of health care, which remains a major barrier to access, especially for the poor who spend a greater share of their household income to meet their health care needs.
This initiative is also expected to strengthen the Bank’s Corporate Social Responsibility position whilst building specialisation and brand knowledge in the health sector.
Fidelity and USAID/GHANA are showing the rest of the industry that there is more to gain from co-operating towards a common goal. Both companies are working together closely.
At a short signing ceremony in Accra, The Deputy Managing Director of Fidelity Bank, Mr. Jim Baiden said, “Such initiatives create strength in numbers, since the pairing creates a stronger unit.”
For his part, the Mission Director of USAID-Ghana, James Bever, lauded Fidelity Bank’s initiative noting, “I am proud to sign this agreement with Fidelity Bank, partnering with financial institutions that are eager not only to make profits but to help improve the country’s health care system.”
He added that Fidelity Bank has demonstrated its commitment to growing SMEs and reaching the unbanked population through the acquisition of ProCredit and the establishment of a financial inclusion department, respectively.
Source: Fidelity Bank