Corlido Group CEO Cornelius Lippe Doevendans (seated left) signing the MoU while Frederick Dodoo, CEO of Lynch Capital Ghana (seated right) and other dignitaries look on
Lynch Capital and the Corlido Group have signed a partnership deal that will help local suppliers to clear their goods and further complete procurement agreements quickly.
Lynch Capital specializes in providing working capital solutions that meet the growth objective and cash flow needs of medium sized businesses while the Corlido Group is a buying organization operating on a global scale and active in procurement and supply chain management.
Fredrick Nii Dodoo, CEO of Lynch Capital, in a welcome speech, said: “We are here to provide relief to suppliers in this country. Our main objective is to finance local content, especially the suppliers who are mainly Ghanaian companies for sectors like oil and gas, mining, health, telecommunications, manufacturing and so forth.”
According to him, most local suppliers in Ghana are often frustrated by payment delays in the supply chain of services.
He, however, expressed the belief that the product of the partnership – invoice factoring – which is fairly new in Ghana, would assist suppliers with easy access to funds.
“The traditional age long method of bank loans and to a very limited extent invoice discounting has not helped, and in very common cases created its own challenge to the supplier. It remains our firm belief that invoice factoring and receivables financing is that singular solution to bridge this gap,” he said.
Mohammed Awal, Minister for Business Development, in an address, called on institutions to consider going beyond financing in the value chain system.
“I want you to do something for Ghana. Help give us interest rate that can make businesses succeed.”
He further called for priority to be given to women in businesses, especially those who would approach the new partners for support.
“Women constitute 52 percent of the Ghanaian population, yet less than 40 percent have access to formal loans, and that’s not good for an inclusive government that we want to create.
Ron Strikker, Ambassador of the Netherlands to Ghana, in a remark, praised the new partnership and economic ties between Holland and Ghana.
He said Holland is keen to help Ghana grow by establishing and supporting more businesses.