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The Ministry of Finance and its partners have engaged Small and Medium Enterprises (SMEs) in the Upper West Region to sensitize them to the government’s Small and Medium Enterprises Growth and Opportunity (SME GO) program.
About 400 SMEs in the region took part in the SME GO program sensitization, which was aimed to expose the SMEs to the program to enable them to take advantage of the intervention for their business’ growth and development.
The government is implementing the SME GO program through the Ministries of Finance and Trade and Industries to support indigenous SMEs with GHȻ8.2 billion to create an enabling environment for the SMEs to thrive.
The program is being implemented in partnership with the Ghana Enterprises Agency (GEA), Ghana Exim Bank and the Development Bank Ghana.
Speaking at the opening of the sensitization program in Wa, Dr. Abudu Abdul-Ganiyu, the Technical Advisor to the Minister of Finance, indicated that the government recognized the SMEs as the “lifeblood of our economy” as it played a crucial role in achieving the nation’s economic development ambitions.
He stressed the need for the country to take initiatives to harness the potential of the SMEs to build a prosperous, dynamic and competitive economy that could stand the test of time.
“We must be intentional about providing access to financial resources, expertise and capacity building program that empower SMEs to drive innovation, create jobs and stimulate economic growth.
Ghana’s growth model must evolve beyond relying heavily on foreign direct investment and raw material support, which can be volatile and expose us to external shocks,” Dr. Abdul-Ganiyu explained.
He added that the government had demonstrated resilience and determination in the economic transformation agenda, which had resulted in the “recent achievements in macroeconomic stability, robust growth, lower inflation and stronger public finances.”
He said the selection criteria and financing instruments of the SME GO program were developed in consultation with the Association of Ghana Industries and tailored to meet the needs of high-growth potential of SMEs.
Dr. Abdul-Ganiyu indicated that the SME GO program transcended beyond financial support to include comprehensive capacity-building program for both the beneficiaries and the business landscape.
He said the Ghana government was supporting the initiative with GH₵700 million, GH₵1.2 billion from the Development Bank Ghana and $400 million from the World Bank’s International Finance Corporation (IFC).
Mr. Joseph Abugre Atogyine, the Upper West Regional Coordinating Director, observed that the government was committed to creating an enabling environment for businesses to thrive.
He indicated that the support for the SMEs sector was appropriate since the sector was the backbone of the country’s economy, accounting for over 70 per cent of Ghana’s Gross Domestic Product (GDP) and contributing significantly to employment creation.
Mr. Atogyine said despite the importance of SMEs to economic growth, they were faced with serious challenges, including limited access to finance, technology and markets among others.
He said: “The SME Growth and Opportunity Program has, therefore, come in handy to bridge the gap between SMEs and financial institutions, development partners and technology providers.”
Mr. Atogyine urged the people to join forces to ensure peace prevailed before, during and after the election for the success of the program since business could not thrive amidst chaos.
Representatives of the implementing partners, including the GEA made presentations on the eligibility criteria for SMEs to access financial support.
To access support from the GEA, the small businesses must have a staff capacity of six to 30 and annual turnover of between GH₵150,000 and GH₵6 million and medium enterprises of 31 to 100 staff capacity and annual turnover of between GH₵6 million and GH₵18 million
Also, for SMEs to access support from the Exim Bank, it must be registered with Registrar General’s Department, must be in operation for at least 24 months, must have met all tax obligations, VAT and employee social security payment and must source at least 60 per cent of its raw materials locally among others.
Some business operators, who spoke to the Ghana News Agency (GNA) at the forum, commended the government for the initiative but expressed concern about the eligibility criteria which they said might deny many SMEs in the region the opportunity to benefit from it.
Source: GNA
