Accra, 17th July 2024 - The Minister for Finance, Dr Mohammed Amin Adam has highlighted the immeasurable contribution of Small and Medium-sized Enterprises (SMEs) to the growth and development of the country.
According to him, SMEs play a key role as “lifeblood” of the Ghanaian economy hence, the need for all stakeholders to collectively ensure their growth and success.
Speaking at the launch of the SME Growth and Opportunity Programme, the MP for Karaga opined that, “supporting SMEs is crucial to achieving our growth and development ambitions” urging stakeholders to “be intentional about providing access to financial resources, expertise, and capacity building programmes that empower them to drive innovation, create jobs, and stimulate economic growth”.
“We gather today as champions of a shared vision: to create an enabling environment for our micro, small, and medium-sized enterprises (SMEs) to thrive. Our SMEs are the lifeblood of our economy, and it is our collective responsibility to ensure their success,” Dr Amin Adam said.
Under the theme, “Breaking Barriers to SME Growth”, the launch of the programme jointly coordinated by the Ministries of Finance and Trade and Industry brought together participants from the private sector, academia, business regulatory and compliance institutions, media, industry, multilateral and bilateral partners as well as financial service providers.
The programme aims to improve access to finance, streamline regulations, foster innovation, and also enhance entrepreneurial skills in order to create a viable SME sector.
According to indicative research, four biggest inhibitors of SME development in Ghana are access to finance, access to markets, access to business development support and complex tax system with constraints to formalization.
Dr Amin Adam further hinted that “through the SME GO, we will bind the public and private sectors together to create a better ecosystem for our SMEs. Our implementing partners - GEA, Ghana Exim Bank, and Development Bank Ghana - possess the expertise and capacity to deliver results swiftly”.
The programme, the Minister noted, was the largest SME financing initiative in the history of Ghana and Africa and acknowledge the valuable contributions of Development Bank Ghana, International Finance Corporation, Ghana Enterprise Agency, and Ghana EXIMBANK who are the partnering agencies under the programme.
The President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo in his keynote address noted that "SMEs are the backbone of Ghana's economy, contributing 70% to our GDP and constituting 92% of businesses. Their entrepreneurial spirit and resilience are driving forces behind our economic transformation."
The President highlighted several success stories that exemplify the potential of Ghanaian SMEs. Kasapreko Company Limited, a homegrown beverage company, has grown from a small business into a multinational corporation with a strong presence across Africa.
Similarly, Blue Skies Holdings Limited started with a small facility in Nsawam and has expanded its operations to multiple countries, maintaining its commitment to sourcing produce locally and creating thousands of jobs for Ghanaians.
Despite these successes, President Akufo-Addo re-echoed the the persistent challenges hinted by the Minister for Finance and disclosed a mobilization to GHC8.2 billion to provide financial and technical support to the sector.
The SME GO Programme, the President noted, prioritised targetted interventions that support government’s goal of creating ‘SME champions’ who can take Ghanaian products and innovations global”.
Other speakers included the Minister for Trade and Industry, Hon. K.T. Hammond, Governor of Bank of Ghana, Dr Ernest Adisson, Mr Solomon Quaynor, Vice President of the AfDB and Mr Kyle Kelhofer, IFC Senior Country Manager. END