The Managing Director of ARB Apex Bank PLC, Mr. Alex Kwasi Awuah, has urged rural banks to support the initiative by government for Small and Medium Enterprises (SMEs) in the country.
According to him, there is no economy in the world that has developed without prioritising the activities of SMEs; so when government is investing its resources, and in the sector, then it is in the right direction – adding that the 2022 budget statement’s objective aims at investing in these enterprises which have been identified as the engine of growth in every economy.
On the benefits rural banks are going to derive from the policy, he said: “For us as financial institutions, and for that matter the rural and community banks spread across the country, it is incumbent upon us that we look at the economy’s direction and see how best we can also support that exercise”.
This, according to Mr. Awuah, is why rural banks are there for financial intermediation, whereby they moblise surplus funds and make sure that they deploy those surplus funds – what he termed as the deficit units.
The Managing Director of ARB Apex Bank PLC made these assertions in an exclusive interview with Business & Financial Times at the 38th Annual General Meeting of Atwima Mponua Rural Bank Plc, which was recently held at Toase.
In a report about the state of SMEs in Ghana, Mr. Awuah pointed out: “We know from all studies that the Micro Small and Medium Enterprises in the country are not funded properly, which is why in many instances they do not grow in leaps and bounds to ensure they create the massive employment they have the potential to do”.
Mr. Awuah has therefore implored rural banks to support the SMEs, saying: “It is incumbent upon us to also embrace this new objective of government; and wherever that our banks are, we become supportive of this initiative and help to drive this agenda – and make sure that in the areas where we operate, all Micro Small Medium Enterprises needing assistance are equally supported to help develop Ghana”.