The Board of the Export Trade, Agricultural and Industrial Development Fund (EDAIF) has approved GH¢50 million to set up the EDAIF Equity Fund.

The Fund would target investments into Small and Medium Enterprises (SMEs) engaged in agro-processing, export trade and industrial development in line with their mandate.

A statement signed by Dr Barfour Osei, Chief Executive Officer of EDAIF and copied to the Ghana News Agency in Accra added that in the period from August to December 2015, the EDAIF Board also approved financing facilities amounting to GH¢52.3 million to beneficiaries in the public and private sectors of the Ghanaian economy.

The EDAIF Equity Fund would over the next five years, support businesses that require long-term investments and provide long-term catalytic capital with technical support where appropriate.

It would also provide investments to start-ups, early stage companies and enterprises where short-term debt financing is inappropriate.

According to the statement, Equity financing in agro-processing would be extended to enterprises in crop such as and vegetable; fruits and juices; meat and dairy; and, edible oils.

It explained that other beneficiaries would be industrial development, enterprises engaged in packaging materials; apparels; woodworks and handicrafts; paper and pulp; in addition to aluminium and metals which will qualify for financing.

The statement said EDAIF is operating the Equity Fund with technical support from Venture Capital Trust Fund and through a Fund Manager, Oasis Capital Ghana Limited which will receive proposals from prospective applicants.

It said the approval of over GH¢52.3 million were made up of GH¢20.3 million as Interest Free Repayable funds and GH¢13.2 million as credit extended towards the purchase of equipment, tools and accessories for agro-processing; and GH?5.7 in grants towards rice, cashew and poultry production.

The remaining GH¢13.1 million, the statement said covered support for the EDAIF-sponsored Cassava and Mango projects that received GH¢8.6 million and GH¢4.5 million respectively.

It added that the support for cassava was for the implementation of Phase 1 of the Cassava Integrated Enterprise Development Project covering the Northern, Brong Ahafo and Ashanti Regions.

According to the statement, financial support was approved to establish three processing factories and over 1000 beneficiaries received financial support to cultivate nearly 4,000 acres of cassava to feed the factories.

"Approvals for the Mango project covered maintenance of existing farms of over 5,000 acres and the cultivation of additional 2,800 acres across the country."