Govt invests GHS2.1 billion to boost small businesses

In
a
bid
to
support
the
country’s
small
and
medium
enterprises,
the
government
is
investing
2.1
billion
Ghana
cedis
through
the
newly
launched
SME
Growth
and
Opportunity
Programme.

The
initiative
aims
to
provide
targeted
financial
and
technical
assistance
to
high-potential
SMEs,
equipping
them
with
the
necessary
resources
to
expand
and
thrive
in
a
competitive
market.

President
Nana
Akufo-Addo
highlighted
the
modalities
of
the
programme
during
its
launch.

“The
programme
will
be
coordinated
by
the
Ministry
of
Finance
and
the
Ministry
of
Trade
and
Industry.
Moreover,
the
Ghana
Enterprises
Agency
(GEA),
Ghana
EXIM
Bank,
and
the
Development
Bank
Ghana
(DBG)
will
be
the
principal
implementing
agencies
for
this
programme.
These
institutions
will
offer
support
to
programme
beneficiaries
directly
and
indirectly
through
PFIs.”

“Ghana
Exim
Bank
will
be
supported
with
GHS
700
million
to
offer
SMEs
highly
subsidised
financial
support
for
both
capital
and
operating
expenditures
and
offer
capacity
building
to
programme
beneficiaries.
A
dedicated
window
for
the
One
District
One
Factory
initiative
is
also
set
up
to
ensure
optimal
synergies
with
this
structural
project.

“GEA,
on
the
other
hand,
will
be
supported
with
GHS
230
million
and
target
high-growth
SMEs
employing
100
persons
or
less
with
small-scale
grants
and
loans
of
up
to
2
years
at
highly
subsidised
rates.”

”Finally,
DBG
will
contribute
to
the
initiative
through
its
newly
created
MSME
Innovate
and
Grow
Fund.
Through
financial
institutions,
it
will
provide
loans
for
up
to
5
years
for
MSMEs,
with
tailored
repayment
conditions
to
best
support
businesses.
The
loan
amount
will
be
decided
on
a
case-by-case
basis
out
of
an
envelope
of
GHS
1.4
billion,”
he
added.

Finance
Ministry,
Dr.
Mohammed
Anin
Adam,
also
shared
the
vision
of
the
programme.

“This
ambitious
Programme
marks
a
big
step
toward
strengthening
the
entire
SME
ecosystem
in
the
medium
term.
I
firmly
believe
that
this
initiative
will
unlock
the
full
potential
of
Ghanaian
SMEs,
creating
a
new
wave
of
entrepreneurs
and
business
leaders
who
will
drive
our
economy
forward.”

“Indeed,
this
programme
is
the
largest
SME
financing
initiative
in
the
history
of
our
country;
and
perhaps
in
Africa.
And
we
must
acknowledge
the
contributions
of
our
partners

Development
Bank
Ghana,
International
Finance
Corporation,
Ghana
Enterprise
Agency,
and
Ghana
EXIMBANK.
I
would
like
to
also
commend
the
technical
team
in
the
Ministries
of
Finance
and
Trade
and
Industry
who
worked
tirelessly
with
my
colleague
Hon.
K.T.
Hammond
and
me
over
the
last
3
months
from
the
conception
of
the
initiative
to
its
launch
today.”

A
beneficiary
of
the
programme,
Sadiq
Abdullai
who
spoke
to
Citi
Business
News
said
“I
am
grateful
for
this
opportunity.
I
am
looking
forward
to
using
this
capital
to
expand
my
business.”

The
SME
sector
remains
the
cornerstone
of
the
economy,
representing
approximately
90
percent
of
businesses
in
the
country.

With
approximately
850,000
SMEs,
the
sector
represents
about
90
percent
of
all
businesses
in
the
country.
SMEs
in
Ghana
contribute
significantly
to
the
economy,
constituting
around
70
percent
of
the
country’s
GDP
and
providing
80
percent
of
private
sector
employment.


Despite
their
significant
contribution
to
the
country’s
economy,
the
sector
battles
several
challenges,
including
access
to
credit.