It is refreshing to learn that government has initiated plans to unlock GH₵6billion in concessional lending over the next two years to support micro, small and medium enterprises (MSMEs) across the country.
Speaking at the 2025 International MSME Day celebration in Accra, Minister of Trade, Agribusiness and Industry Elizabeth Ofosuhene-Adjare said the initiative will be rolled out in partnership with international development institutions – enhancing access to affordable financing, encouraging business growth and improving scalability.
She described the country’s MSMEs as bold, creative and resilient, but likened them to a malnourished child – full of potential, yet deprived of the support needed to grow.
According to the minister, many businesses remain small not because of lacking ambition but due to constraints within the business environment.
Citing a 2022 study on digital transformation by Effah and colleagues, she noted that most MSMEs operate informally – which limits their access to financial services, digital tools and government support. She also pointed out that poor digital literacy and high infrastructure costs prevent many businesses from fully using mobile money and social media for commercial purposes.
To address these issues, the minister said government is introducing targetted policies for micro-enterprises and streamlining support processes.
Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.
They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies.
These numbers are significantly higher when informal SMEs are included. According to estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.
In emerging markets, most formal jobs are generated by SMEs – which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth; it is the second most-cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries – and that’s why this Paper is excited about the development and hopes it will go a long way in enabling SMEs to play their role in the country’s socio-economic development.
We challenge beneficiaries to use the resources judiciously and live up to the expectations of all well-meaning Ghanaians.
