The government will support the Ghana Enterprises Agency (GEA) with an amount of GHS200 million for high-growth Small and Medium Enterprises (SMEs) through the provision of small scale grants and loans of up to 2 years at highly subsidized rates as part post Covid economic recovery programme.
The Deputy Minister for Trade and Industry, Kofi Ahenkorah Marfo, who announced this at a Stakeholder Sensitization on the SME Growth and Opportunity Initiative in Tamale on Wednesday (September 4, 2024), also disclosed that the Ghana EXIM Bank will also be supported with GHS500 million to offer highly subsidized financial support to SMEs.
Additionally, he said the Development Bank Ghana (DBG) will commit a total of about GHS 1.2 billion to also support the SMEs through Participating Financial Institutions.
Following the unveiling of the landmark initiative by President Nana Akufo-Addo in July, 2024, a national sensitisation programme is being organized across the 16 regions to create awareness of the programme.
Mr. Marfo noted the objective of the SME GO Programme is to implement a sustainable financing framework that allows for both the public and private sectors to scale up financial and technical support towards SME growth and expansion.
The Minister of Finance, Dr Mohammed Amin Adam, in a presentation made on his behalf said supporting Small and Medium Enterprises is crucial to achieving the country’s growth and development ambitions. Therefore, he indicated, “We must be intentional about providing access to financial resources, expertise, and capacity building programs that empower them to drive innovation, create jobs, and stimulate economic growth.”
The Finance Minister stated Ghana’s growth model must evolve beyond relying heavily on foreign direct investment and raw material exports, which can be volatile and expose the nation to external shocks. Instead, Dr Amin emphasized, “We must harness the potential of our homegrown SMEs to build a prosperous, dynamic, and competitive economy.”
He said that the country has overcome challenges in the past, and argues that the recent achievements in macroeconomic stability – robust growth, lower inflation, and stronger public finances demonstrate our resilience and determination.
“Through the SME GO, we will bind the public and private sectors together to create a better ecosystem for our SMEs. Our implementing partners – Ghana Enterprises Agency, Ghana Exim Bank, 1D1F, and Development Bank Ghana – possess the expertise and capacity to deliver results swiftly” he announced.
Capacity building
Dr Mohammed Amin also acknowledged that financial support alone is insufficient, which is why the Programme includes comprehensive capacity-building programs to upskill both beneficiaries and the wider business landscape stating this is particularly important because it seeks to address the risk of lending to SMEs by Commercial Banks, who continue to be worried about low loan recoveries.
Meanwhile, the Northern Regional Minister in his remarks said the foundation of the Ghanaian economy hinges on a thriving and expanding SMEs, and urged all stakeholders to ensure that the initiative is well coordinated, obstacles recognized and creative solutions are proffered in order to help the businesses reach new heights.
