The government has allocated 8.2 billion Ghana cedis to the newly launched SME Growth and Opportunity Programme to support small and medium enterprises in the country.
This program is designed to offer specific financial and technical support to SMEs with high potential, enabling them to grow and succeed in a challenging market environment. During the launch of the program, President Nana Akufo-Addo outlined the details of the initiative.
The program will be coordinated by the Ministry of Finance and the Ministry of Trade and Industry. Moreover, the Ghana Enterprises Agency (GEA), Ghana EXIM Bank, and the Development Bank Ghana (DBG) will be the principal implementing agencies for this program. These institutions will offer support to program beneficiaries directly and indirectly through PFIs.
Ghana Exim Bank will be supported with GHS 700 million to offer SMEs highly subsidised financial support for both capital and operating expenditures and offer capacity building to programme beneficiaries. A dedicated window for the One District One Factory initiative is also set up to ensure optimal synergies with this structural project.
GEA, on the other hand, will be supported with GHS 230 million and target high-growth SMEs employing 100 persons or less with small-scale grants and loans of up to 2 years at highly subsidized rates.
Finally, DBG will contribute to the initiative through its newly created MSME Innovate and Grow Fund. Through financial institutions, it will provide loans for up to 5 years for MSMEs, with tailored repayment conditions to best support businesses. The loan amount will be decided on a case-by-case basis out of an envelope of GHS 1.4 billion.
Dr. Mohammed Anin Adam from the Finance Ministry also expressed support for the program’s vision.
This ambitious Programme marks a big step toward strengthening the entire SME ecosystem in the medium term. I firmly believe that this initiative will unlock the full potential of Ghanaian SMEs, creating a new wave of entrepreneurs and business leaders who will drive our economy forward.
Indeed, this programme is the largest SME financing initiative in the history of our country; and perhaps in Africa. And we must acknowledge the contributions of our partners – Development Bank Ghana, International Finance Corporation, Ghana Enterprise Agency, and Ghana EXIMBANK. I would like to also commend the technical team in the Ministries of Finance and Trade and Industry who worked tirelessly with my colleague Hon. K.T. Hammond and me over the last 3 months from the conception of the initiative to its launch today.
Sadiq Abdullai, a recipient of the program, expressed his gratitude for the opportunity and stated his intention to utilize the capital for expanding his business.
The SME sector continues to play a vital role in the economy, with around 850,000 SMEs representing about 90 percent of all businesses in the country.
These businesses contribute significantly to Ghana’s GDP, accounting for approximately 70 percent, and also provide 80 percent of private sector employment. Despite their importance, SMEs in Ghana face various challenges, including limited access to credit.
