President Nana Addo Dankwa Akufo-Addo has unveiled a comprehensive SME Growth and Opportunity program aimed at bolstering small and medium-sized enterprises (SMEs) in Ghana. The initiative, valued at GH¢8.2 billion, is designed to support SMEs in scaling up their operations and reaching global markets.
Financial and Technical Support
The program, funded by the government along with local and international financial institutions, provides significant financial backing and technical assistance for participating SMEs. President Akufo-Addo explained that the program would be coordinated by the Ministry of Finance and the Ministry of Trade and Industry, with the Ghana Enterprises Agency (GEA), Ghana Exim Bank, and Development Bank Ghana (DBG) as the principal implementing agencies.
During the launch, President Akufo-Addo, accompanied by several ministers, commenced the disbursement of funds, with some beneficiaries receiving up to GH¢1 million. The President highlighted that these institutions would provide direct and indirect support to beneficiaries through participating financial institutions, such as the Ghana Exim Bank, which will receive GH¢700 million to offer highly subsidized financial support and capacity-building services to SMEs.
A dedicated window for the One District One Factory (1D1F) initiative will also be established to ensure optimal synergies within this structural project. GEA will receive GH¢230 million to target high-growth SMEs employing 100 or more individuals with small-scale grants and loans at highly subsidized rates.
New Funds and Innovation Hubs
The DBG will contribute through its newly created MSME Innovate and Grow Fund, providing loans with tailored repayment conditions for up to five years. This initiative will allocate GH¢1.4 billion for loans to SMEs.
Additionally, President Akufo-Addo announced the establishment of a food innovation hub by the Ghana Exim Bank within the next three months. This hub, located on the University of Ghana campus, will support MSMEs in the food industry by providing testing and scaling-up facilities. The hub will feature processing equipment, warehousing space, a testing lab, and suites for SMEs to interact with regulatory authorities directly.
This facility aims to aid food companies that lack sufficient funding for equipment by offering them access to modern processing tools and expertise from food scientists and specialists. The initiative will also provide packaging and branding support, helping SMEs meet export standards.
Comprehensive Capacity Building
The GEA and DBG will further support program beneficiaries with targeted training in financial management, regulatory compliance, digitalization, and business plan development. An online application portal, developed by technology partners, will ensure a fair and transparent screening process prioritizing SMEs with robust growth prospects.
Finance Minister Dr. Mohammed Amin Adam emphasized the importance of providing SMEs with access to financial resources, expertise, and capacity-building programs. Also, he stated that Ghana’s growth model must evolve beyond reliance on foreign direct investment and raw material exports. Instead, the focus should be on harnessing the potential of homegrown SMEs to build a prosperous, dynamic, and competitive economy.
“Today, we embark on a new chapter in our journey towards economic transformation. We’ve overcome challenges in the past, and our recent achievements in macroeconomic stability, robust growth, lower inflation, and stronger public finances demonstrate our resilience and determination,” Dr. Adam said.
He added that through the SME goal, the public and private sectors would be bound together to create a better ecosystem for SMEs. Furthermore, the ministries have consulted stakeholders, including the Association of Ghana Industries (AGI) and civil society, to design selection criteria and financing instruments tailored to meet the needs of high-growth potential SMEs.
Source: Graphic Online
