CBG gives Kasapreko major investment boost



Consolidated Bank Ghana (CBG) has secured GHS150 million on the Ghana Stock Exchange to bolster Kasapreko Company Limited, a local beverage manufacturer.

This initial amount, part of a larger GHC600 million facility, is earmarked to bolster the company’s working capital, fund capital expenditure for operations expansion, and refinance short-term debts.

Notably, the debt instrument acquired from the stock market carries a lending rate of 26%, a significant reduction compared to the Ghana Reference Rate of approximately 34%. This financial arrangement offers a fixed rate over a three-year period.

Daniel Addo, the MD of CBG, said collaboration between indigenous companies is a vital strategy to surmount financing hurdles through innovative approaches, thereby fostering national development.

Speaking at a joint press briefing with Kasapreko in Accra on Monday (19 February), Addo said: “The solution to our challenges funding local corporates and Small and Medium-sized Enterprises (SMEs) lies with us, and it’s really around how banks, other financial institutions and industry players address the risks inherent in SMEs, in particular.”

He encouraged financial institutions and industry players to confront risks head-on, stating, “Our business is not to run away from risks, but to manage those risks, and advise local business on how best to run their purse to grow.”

Addo reaffirmed CBG’s commitment to supporting Kasapreko Limited and other Ghanaian businesses, pledging unwavering assistance.

“With this transaction, CBG continues to execute its strategy of providing innovative funding solutions, whilst also sending out a strong signal that our syndications and markets desk business is open for business,” he said. “… We reiterate our commitment to the Ghanaian entrepreneur and reaffirm our pledge to stand with you through the good and the bad times.”

For his part, Richard Adjei, the managing director of Kasapreko, acknowledged the challenges Ghanaian companies have faced amid the COVID-19 pandemic, noting that such innovative financing avenues would invigorate their operations.

He described the financing scheme from the Ghana Stock Exchange as a comparatively affordable, patient capital, and sustainable source for business expansion. Adjei outlined plans for Kasapreko to utilise the GHC150 million to enhance production capacity and bolster trade under the African Continental Free Trade Area (AfCFTA), citing recent exports to Kenya and South Africa.

Highlighting Kasapreko’s commitment to social responsibility, Adjei mentioned substantial donations to the National Cardiothoracic Centre since 2017, aimed at supporting individuals with heart-related conditions. He outlined ongoing CSR initiatives, including the construction of hospitals and scholarships for underprivileged students, signaling an intensification of such efforts in the future.

Kasapreko directly employs 1,200 staff and indirectly provides livelihood for a larger number through its value chain. With an export footprint spanning nine countries in West Africa, two in southern Africa and one in East Africa, Kasapreko is a major foreign exchange earner and a leader in realising the vision of AfCFTA.

Source: Daily Mail GH

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