Cape Coast: Small and Medium Enterprises (SMEs) have been encouraged to leverage the government’s ‘SME GO’ programme to boost their activities and spur growth.
The Government’s SME GO initiative seeks to support fledging businesses with finance, expertise and training to facilitate growth.
In a speech delivered on his behalf at a stakeholder sensitisation forum for SMEs in the Central Region, Dr Mohammed Amin Adam, the Minister of Finance, said the Government was intentional about providing access to financial resources, expertise and capacity-building programmes to empower businesses.
He particularly underscored the importance of the SMEs project to drive innovation, create jobs and stimulate economic acceleration.
Hinged on the fact that SMEs were the lifeline of Ghana’s economy, he said it should be all stakeholders’ collective responsibility to ensure the stimulus policy’s success.
Ninety -two per cent of registered businesses were SMEs whilst 85 per cent of manufacturing jobs were created by SMEs, t
hus contributing about 70 per cent to the country’s Gross Domestic Product (GDP), he said.
Dr Adam emphasised the necessity for Ghana’s growth model to transcend its heavy reliance on foreign direct investments and raw material exports, which could be volatile and leave the country vulnerable to external shocks.
He proposed a shift towards a more sustainable growth model that integrated both the public and private sectors to create a conducive ecosystem for SMEs.
In that regard, he said the SME GO programme leveraged the expertise and capabilities of strategic partners such as the Ghana Enterprise Agency (GEA), Ghana Exim Bank, and Development Bank Ghana to expedite results.
Dr Amin highlighted the collaborative efforts with stakeholders, including the Association of Ghana Industries and civil society, to develop tailored criteria and financing instruments to cater for high-growth potential SMEs.
He emphasised the importance of comprehensive capacity-building programmes by the initiative to enhance the s
kills of beneficiaries and foster growth within the broader business landscape.
Such a holistic approach, he indicated, would help address the concerns of commercial banks regarding the risks associated with lending to SMEs to mitigate low loan recoveries.
During an open forum, supporting institutions like GEA, Ghana Exim Bank and Development Bank Ghana elaborated on loan accessibility, processes and diverse business solutions available to stakeholders.
While acknowledging that the initiative was laudable, some raised concerns about the potential politicisation of beneficial state policies, hindering the intended benefits.
They called on the Ghana Exim Bank to fulfil its commitment to supporting SMEs to enable them to scale and expand their businesses.
Source: Ghana News Agency