The Minister of State for Finance, Abena Osei Asare, has announced that the government will soon roll out practical support for Small and Medium Enterprises (SMEs) following the completion of the final stakeholder sensitization program in Greater Accra under the SME-Go initiative.
With the conclusion of this phase, the government reaffirms its commitment to empowering SMEs as a key driver for sustainable macroeconomic stability.
“We understand that the most effective way to maintain macroeconomic stability is by empowering SMEs to drive growth and expansion,” said Osei Asare. “With the completion of this phase of the SME-Go support program, we are prepared to extend much-needed assistance to businesses, enabling them to thrive and contribute to national economic progress.”
Robust Financial Commitments
The government is supporting the Ghana Enterprises Agency (GEA) and Ghana Exim Bank (GEXIM) with GHS 700 million, while the Development Bank Ghana (DBG) is committing approximately GHS 1.2 billion. Additionally, the International Finance Corporation (IFC) of the World Bank is providing US$400 million through Participating Financial Institutions (PFIs), and the African Development Bank (AfDB) has pledged US$40 million.
This partnership forms a strong framework designed to stand by Ghanaian businesses, said the Minister.
Accelerating SME Support
Through the SME-Go program, the government aims to accelerate and scale up support for businesses.
“We are intentionally providing access to financial resources, expertise, and capacity-building programs that will empower SMEs to drive innovation, create jobs, and stimulate economic growth,” the Minister added.
To date, the government has engaged 3,250 SMEs across all 16 regions, educating the business community about the SME-Go program’s features and elaborating on eligibility criteria and access to support, including funding.
Significant Institutional Support
GEXIM: Over the years, GEXIM has made significant interventions to support Ghanaian businesses in priority sectors of the economy. Represented by Rosemary Beryl Archer, CEO Lawrence Agyinsam highlighted the bank’s recent capacity-building program, which trained over 100 Ghanaian SMEs with the help of experts from Thailand. GEXIM will continue to offer loans, advisory services, and capacity-building under the SME-Go initiative, focusing on both capital expenditure (CAPEX) and operational expenditure (OPEX). The bank will also support businesses under the One District One Factory (1D1F) initiative.
IFC: Kyle Kelhofer, Senior Country Manager of IFC, noted that the corporation has invested nearly US$2 billion in critical sectors of the Ghanaian economy over the past decade, including agribusiness, healthcare, financial institutions, infrastructure, manufacturing, education, and tourism. In the past year alone, IFC has committed over US$400 million, with nearly US$200 million directed to SMEs through intermediary financial institutions.
DBG: DBG’s loan programs will be facilitated through partner institutions, including commercial banks and savings and loans providers, with an emphasis on asset financing for SMEs.
Success Stories from the ‘Tuesday Market’
The “Tuesday Market” initiative by GEXIM continues to provide a valuable platform for entrepreneurs to showcase their products and reach target customers. Gideon Dendzo, Team Lead at Giddins Ghana Ltd, which manufactures leather products, expressed appreciation for the opportunity the market provides to gain access to capital and connect with potential buyers. He highlighted the SME-Go initiative as a critical opportunity for businesses to align with government criteria and grow from small to medium, and eventually, large corporations.
Similarly, Derrick Annoh of Sparkxx F&B, which produces plantain chips, sweet potatoes, and other snack items, praised GEXIM for its efforts in promoting locally made products and empowering businesses in the food and beverage sector. He noted that the SME-Go support program is an excellent step by the government in assisting local businesses for long-term growth.
Event Outcomes
The event aimed to provide SMEs with deeper insights into the SME-Go program, focusing on the dynamics, eligibility criteria, and the application process. It emphasized how businesses can leverage this important initiative to fuel their growth.
Positive Economic Indicators
Ghana’s economy has shown strong performance, with growth averaging 4.7% in Q1-2024, driven by the industrial sector’s 6.8% growth rate, higher than the 3.1% recorded during the same period last year. Additionally, headline inflation as of August 2024 had declined to 20.4%, a significant drop from 54% in December 2022, putting the country on track to meet the 2024 inflation target of 15% ± 2%, according to available data.
By Eugene Davis
