Govt invests GH¢8.2bn to boost small businesses

In a bid to support the country’s small and medium enterprises, the government is investing 8.2 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.”

Recent polls consistently place the NDC ahead with the most recent survey showing 54% of respondents favouring the NDC,” he stated.

He continued by saying that voters’ decisions about whom to support will be heavily influenced by issues like job creation and economic management, among others.

This, according to him will put the NPP at a disadvantage given the current economic hardship.

“In addition, multiple surveys have shown that economic management and job creation are going to be the most important issues during the election for voters which we believe will put the ruling NPP at a disadvantage given the economic challenges that the country has faced over the last couple of years.”ShareTweet

”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.

Source: https://citinewsroom.com/

POSTED BY
Association of Ghana Industries

Leave A Comment

Copyright 2020. All Rights Reserved