Ghana to launch ‘SME Growth and Opportunity Programme’ in July 2024 …to offer support to businesses to become SME champions

To improve small business competitiveness and boost industrialization, the Ghanaian government is set to launch and implement the ‘SME Growth and Opportunity Programme’ (SME G&O) in July 2024.

Currently, SMEs in Ghana account for 92% of existing companies, 85% of manufacturing jobs, and 70% of GDP. They are seen as a significant driver for sustainable, inclusive, and impactful growth and employment.

In a recent press update, Finance Minister Dr. Mohammed Amin Adam highlighted that the initiative aims to consolidate ongoing SME support programs and offer more targeted support to select companies with the potential to transition from SMEs to large businesses under the ‘SME Champions’ initiative.

He adds that stakeholder consultations are already underway, and the program is scheduled to be launched on July 16, 2024, during the National SME Summit, which will feature an address by the President of Ghana.

The SME G&O program will be coordinated by the Ministry of Finance and the Ministry of Trade and Industry, with support from the Ghana Enterprises Agency (GEA), Ghana EXIM Bank, and Development Bank Ghana (DBG).

These organizations will provide tailored technical and financial support to beneficiaries. The program framework emphasizes targeted interventions, loan recovery, technical training, and handholding support. Financing instruments such as loans, equity investments, and interest subsidies will be provided through diverse funding sources to achieve the goal of creating “SME champions.”

A recent Ghana SME Sector Report 2023 by the Strategy and Research Department of GCB highlights that SMEs in Ghana source most of their raw materials domestically, forming partnerships with local suppliers.

The regulatory framework for SMEs aims to provide a conducive operating environment, protect interests, ensure compliance, and promote growth. Despite this, SMEs face financial risks such as limited access to financing and cash flow issues, market risks from changing conditions and competition, and operational risks including supply chain disruptions and inadequate infrastructure. To navigate these challenges, SMEs must comply with regulatory requirements, licensing obligations, tax compliance, and labor laws. They also need to monitor external factors like government policies, economic instability, and political changes to mitigate risks and seize opportunities.

By Eugene Davis