Government pledges support to transform SMEs into millionaire companies

May 16, 2024
Government pledges support to transform SMEs into millionaire companies

The government has unveiled an ambitious plan to elevate Small and Medium-sized Enterprises (SMEs) into millionaire companies, aiming to bolster economic growth and stability by empowering these vital contributors to the national economy.

Dr. , the Finance Minister, outlined the government's commitment during a visit to SMEs at a special edition of the Ghana Export-Import Bank (GEXIM) in . The initiative follows a strategic partnership between the Bank for Investment and Development (EBID), GEXIM, and GCB Bank, which pledged to invest US$200 million into Ghanaian SMEs.

Key components of the government's strategy include increasing financing for SMEs in critical sectors such as agriculture, agro-processing, and manufacturing. Additionally, efforts will be directed towards creating an enabling environment to mitigate the risk associated with commercial banks' lending to SMEs.

To support SMEs in accessing funding and expanding their operations, the government will prioritize training in business plan preparation, bookkeeping, and basic banking systems. Dr. Amin Adam emphasized the importance of equipping SMEs with the necessary skills to meet loan conditions and facilitate access to grants from development finance institutions.

Acknowledging the significant role SMEs play in Ghana's economy, Dr. Adam stressed that the government aims to position them at the forefront of economic growth and stability. With SMEs constituting a substantial portion of manufacturing, contributing to growth, and providing employment opportunities, the government views their success as pivotal to national development.

The Finance Minister highlighted the importance of credible business plans and manufacturing capabilities in identifying SMEs eligible for support. He expressed optimism that strategic interventions over the next decade could create millionaires out of SMEs, fostering long-term economic prosperity.

Addressing the challenges faced by SMEs, including limited access to finance, Dr. Adam underscored the government's commitment to addressing these constraints. He called for institutional support to sustain initiatives like the Tuesday market, emphasizing their role in job creation, development, and economic growth.

SME representatives welcomed the government's initiatives while highlighting the ongoing financial challenges hindering their growth and expansion. Michael Acquah, CEO of Supreme Podz Industry Limited, emphasized the need for financial support to realize their full potential, while Ewuradwoa Ahoi, CEO of made by Rawd, emphasized the demand for innovative financing solutions to unlock the export potential of Ghanaian SMEs.

As the government continues to prioritize SME development, collaboration between public and private sectors remains essential to unlocking the full potential of these dynamic enterprises and driving sustainable economic growth in Ghana.

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