Ghana is set to benefit from a $45 million African Development Bank (AfDB) grant for a Small Medium Scale (SME) growth and digitalisation project next year.
The grant formed part of the AFDB’s private sector development strategy, which outlines a cohesive platform for executing the Bank’s private sector agenda with a significant focus on SME development.
“Our initiatives, such as providing technical assistance, enhancing digital financial inclusion, and supporting specialised agro-industrial zones are designed to address the unique challenges faced by SMEs in Africa,” said Mr. Solomon Quaynor, the Vice President of the African Development Bank, responsible for private sector, infrastructure and industrialization at the SME growth and Opportunity Summit organised by the Ministry of Finance and the Ministry of Trade and Industry.
The event held on the theme “Breaking Barriers to SME, growth” brought together selected participants from the private sector, academia, business regulatory and compliance institutions, media, industry, multilateral and bilateral partners as well as financial service providers.
It integrates interventions across various sectors, including finance, governance, and industrialisation to enhance SME access to finance and markets, focusing on creating value chains, improving productivity and facilitating market access.
The President, at the event also launched the GH₵8.2 billion SME GO programme to support SMEs in the country.
Mr Kyle Kelhofer, Senior Country Manager of the International Finance Corporation (IFC), disclosed that the IFC has supported the country with over $400 million out of which over $120 million was committed to financial sector for on-lending support, incentivising growth, and SMEs.
He observed that Ghana had a proven track record of growing SMEs.
He however said the government could quicken the pace by providing SMEs with accessible and transparent business environment in which they could formalise and enjoy benefits available to formal companies.
“Supporting the SMEs does not just mean we are supporting small businesses, but rather we’re investing in the future large local corporates for Ghana. It is today’s SMEs that are tomorrow’s large-scale job creators, economic transformation, and leadership.
Dr Humphrey Kwesi Ayim-Darke, President of the Association of Ghana Industries (AGI), said breaking barriers for SME growth was a shared responsibility that required the collective effort of entrepreneurs, policymakers, financial institutions and other stakeholders.
He noted that consolidating efforts and adopting more innovative approaches to promote the sector were crucial to navigating the complexities of modern markets and global competition.
Within the short term, he urged the government to collaborate with the private sector to review tax policies that hindered the growth of SMEs.
“We must strive to simplify the tax regulatory framework, ensuring it is conducive to the unique needs of SMEs. We therefore pledge our commitment to coordinate with the government to harness the full benefits of this programme,” he said.
Source: GNA
