Minister for Finance, Dr. Mohammed Amin Adam has outlined plans to address the financial challenges hindering the growth and expansion of Small and Medium-sized Enterprises (SMEs) in the country.
The Minister made this known when he visited some SMEs at a special edition of the Tuesday Market hosted by Ghana Export-Import Bank (GEXIM) on Wednesday, May 15, in Accra.
“Access to finance is a critical barrier that many SMEs in Ghana face,” stated Dr. Amin Adam.
“We recognize the importance of SMEs as engines of economic growth and job creation, and it is imperative that we provide them with the necessary support to thrive.”
One of the key pillars of the Finance Minister’s plan is the establishment of specialized funding programmes tailored to the needs of SMEs.
These programmes will offer flexible financing options to enable businesses to procure the logistics and equipment necessary for scaling up their operations.
“We are committed to providing SMEs with the financial resources they need to realize their full potential,” affirmed Dr. Amin Adam. “Through targeted funding initiatives, we aim to empower entrepreneurs and facilitate the expansion of their businesses both domestically and internationally.”
The Finance Minister also emphasized the importance of collaboration between the government and the private sector in driving economic growth.
He highlighted the role of public-private partnerships (PPPs) in mobilizing additional resources and expertise to support SME development.
“Innovation and collaboration are key to unlocking the growth potential of SMEs,” stated Dr. Amin Adam. “By working together with the private sector, we can leverage our collective strengths to create a conducive environment for business growth and investment.”
In addition to financial support, he underscored the significance of capacity-building initiatives to equip SMEs with the skills and knowledge needed to succeed in today’s competitive market landscape.
He announced plans to launch training programs and workshops focused on business development, marketing, and export readiness.
“We are not just providing funding; we are investing in the future success of Ghanaian SMEs,” declared Dr. Amin Adam.
“By equipping entrepreneurs with the necessary skills and knowledge, we can help them unlock new opportunities and reach new markets.”
Access to finance has long been cited as one of the primary challenges facing SMEs in Ghana. Whether it’s a budding startup in the tech sector or a family-run artisanal business, entrepreneurs often find themselves navigating a complex landscape of financial barriers that stifle their ambitions and limit their potential.
The constraints of traditional lending institutions, such as banks, pose significant hurdles for SMEs seeking capital. Stringent collateral requirements, high interest rates, and lengthy approval processes create formidable obstacles for entrepreneurs, particularly those operating in sectors deemed high-risk or lacking in tangible assets.
Moreover, the dearth of alternative financing options exacerbates the funding gap faced by SMEs. Venture capital and private equity funding, which play a pivotal role in supporting entrepreneurial ventures in more developed economies, remain relatively nascent in Ghana. Limited access to angel investors and crowdfunding platforms further restricts the avenues available for SMEs to raise capital.
Against this background, the plan to boost SME funding as announced outlined by the Finance Minister comes as a great relief to stakeholders within the sector.
CEO of made by Radw, a leading beauty technology company in Ghana and Malaysia, Ewuradwoa Ahwoi, in response to the Finance Ministers bold plans, expressed optimism about the prospects for SME growth in Ghana.
“We welcome the government’s initiatives to boost SME funding,” said Ms. Ahwoi. “Access to finance has been a significant challenge for businesses like ours, and we believe that these new initiatives will provide much-needed support for expansion and innovation.”
She said the Minister’s plan is a significant step forward for Ghana’s entrepreneurial ecosystem.
By providing targeted financial support, valuable skills training, and fostering collaboration, Ghanaian SMEs are positioned to become a powerful force for sustained economic growth and prosperity, she remarked.
