Ghana-Ecobank DCA Guarantee
"In response to this environment USAID/Ghana implemented two Development Credit Authority (DCA) loan guarantees with EcoBank, a prominent retail bank in Ghana. Under the guarantees USAID/Ghana agreed to cover 50 percent of EcoBank’s losses of principle on guaranteed loans up to a specified ceiling on total loan value. The guarantees reduce the bank’s risk and thereby encourage it to make loans to specific sectors that support USAID/Ghana’s development objectives. USAID/Ghana structured the two DCA guarantees to support its Economic Growth strategy and specified MSMEs, microfinance institutions (MFIs), and NGOs with activities in manufacturing, agriculture, agricultural processing, salt mining/production, fisheries, tourism, wood products, textiles and garments, and other potential growth industry sectors as qualified recipients of guaranteed loans. The guarantees’ Action Packages also emphasized a particular desire to improve access to larger, medium to long-term loans for these sectors."