The International Finance Corporation (IFC) has thrown its weight behind the newly launched SME Growth and Opportunity (GO) Programme, signaling a strong commitment to fostering entrepreneurship and economic development in the West African nation.
The initiative was unveiled at the SME Growth and Opportunity Summit held in Accra, bringing together key stakeholders from both the public and private sectors.
Kyle Kelhofer, Senior Country Manager for IFC in Ghana, emphasized the critical role of SMEs in driving Ghana’s economic progress.
“In Ghana, where SMEs constitute a significant portion of the business community, the importance of this program cannot be overstated,” Kelhofer remarked. “We at the International Finance Corporation put SMEs at the core of our mandate and are deeply invested in their growth and development, as well as the enabling investment climate frameworks and business partnerships.”
The IFC’s support for the SME GO Programme is backed by a track record of substantial investments in Ghana. Kelhofer revealed, “In the last decade, IFC has brought over US$2.5 billion into the Ghanaian economy through investments in sectors such as banking, infrastructure, manufacturing, agribusiness, and education/healthcare services.”
He added, “This past year alone, as part of our counter-cyclical mandate, IFC provided over $400 million in investments, the largest in the past 10 years. Over $120M of this was devoted towards the financial sector and support for on-lending to SMEs.”
The SME GO Programme aims to address key challenges facing small and medium enterprises, including access to finance, technical assistance, and an improved business environment.
Kelhofer outlined the IFC’s approach to facilitating financing for SMEs in Ghana, which includes support via financial intermediaries, direct investments for growing SMEs and local corporates, and strengthening financial infrastructure while improving the investment climate.
A notable aspect of the IFC’s support is its focus on women-owned businesses. “Women entrepreneurs have shown remarkable resilience and ingenuity in the face of challenges. They have proven their ability to drive growth and create sustainable businesses that not only support their families but also contribute to the broader economy,” Kelhofer noted.
The IFC is also working to ease the transition of businesses from the informal to the formal sector.
Kelhofer explained, “IFC, in partnership with the Government of Switzerland, is actively engaged with the Ministry of Finance, the Bank of Ghana, and the Office of Registrar of Companies, to ease the process of business registration, enable access to asset security for improved access to finance, and leverage successful credit registry.”
While acknowledging the challenges of doing business in Ghana, Kelhofer emphasized the importance of dialogue and partnership. “The starting point for the resolution of any business challenge is dialogue, listening and being heard, and supported,” he said. “And I’m delighted to see today’s SME initiative in partnership – in dialogue – with the Ministries of Finance, and Trade and Industry.”
The IFC’s support for the SME GO Programme is not just about helping small businesses, but about investing in Ghana’s future. Kelhofer stated, “Today’s SMEs are tomorrow’s local corporates, providing large scale jobs, economic transformation, and leadership.” He cited success stories such as DTRT Apparel, which has grown from a small operation to become West Africa’s largest modern apparel company, employing over 7,000 people.
As Ghana embarks on this ambitious journey to empower its SMEs, the IFC’s support for the SME GO Programme is expected to be a catalyst for economic transformation. Kelhofer concluded, “This sends a signal that Ghana is open for business and is committed to fostering an improved environment where SMEs can today thrive and tomorrow become the large transformational corporates building Ghana a better future.”
The IFC’s backing of the SME GO Programme underscores its confidence in Ghana’s economic potential and its commitment to supporting the country’s entrepreneurial ecosystem. As the program rolls out, it is anticipated to play a crucial role in driving sustainable economic growth and job creation in Ghana.
