Ministry of Finance and Partners sensitizes SMEs in Northern Region

The Ministry of Finance in collaboration with its Partners on Wednesday September 4, 2024, sensitized Small and Medium Enterprises (SMEs) in the Northern Region on the government’s Small and Medium Enterprises Growth and Opportunity (SME GO) programme.

The sensitization forum was aimed at exposing SMEs in the Northern Region to the programme to enable them to take advantage of the intervention for their business growth.

The government through the Ministries of Finance and Trade and Industries is implementing the SME GO programme to support indigenous SMEs in the country with GHȻ8.2 billion to create an enabling environment for the SMEs to thrive.

The programme is being implemented in partnership with the Ghana Enterprises Agency (GEA), Ghana Exim Bank and the Development Bank Ghana.

Addressing the participants, the Technical Advisor to the Minister of Finance, Dr. Abudu Abdul-Ganiyu, who addressed the participants on behalf of the sector Minister, described the SMEs as lifeblood of the Ghana economy hence there’s the need for a collective responsibility to ensure their success.

He said to achieve the growth and development ambitions in the country it is prudent to implement strategic initiatives to augment the potential of the SMEs in the country.

“The data is clear: supporting SMEs is crucial to achieving our growth and development ambitions. We must be intentional about providing access to financial resources, expertise, and capacity building programs that empower them to drive innovation, create jobs, and stimulate economic growth”.

Mr. Abdul Ganiyu further stated that, “Ghana’s growth model must evolve beyond relying heavily on foreign direct investment and raw material exports, which can be volatile and expose us to external shocks. Instead, we must harness the potential of our homegrown SMEs to build a prosperous, dynamic, and competitive economy”.

He said the government led by Nana Addo had demonstrated resilience and determination in the economic transformation agenda, which had resulted in macroeconomic stability, robust growth, lower inflation and stronger public finances.

“Today, we embark on a new chapter in our journey toward economic transformation. We have 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”.

He said the Ghana government was supporting the initiative with GH₵700 million, GH₵1.2 billion from the Development Bank Ghana and $400 million from the World Bank’s International Finance Corporation (IFC).

On his part, the Deputy Minister of Trade and Industry Mr. Kofi Ahenkorah Marfo, while encouraging the SMEs to take advantage of the program also revealed that, government will support Ghana Enterprise Agency GEA with GHS200 million for high-growth SMEs through the provision of small-scale grants and loans of up to 2 years at highly subsidized rates.

He also mentions that, the Ghana EXIM Bank will also be supported with GHS500 million to offer SMEs highly subsidized financial support; and additionally, the Development Bank Ghana will commit a total of about GHS 1.2 billion to support SMEs through Participating Financial Institutions.

In his open remarks, the Northern Regional Minister Alhaji Shani Alhassan Shaibu, stated that the government was committed to create an enabling environment for businesses to thrive.

He indicated that the support for the SMEs sector was timely since the sector was the backbone of the country’s economy, accounting for over 70 per cent of Ghana’s Gross Domestic Product (GDP) and contributing significantly to employment creation.

Representatives of the implementing partners, including the GEA, Ghana EXIM Bank and Development Bank Ghana made presentations on the eligibility criteria for SMEs to access financial support.

To access support from the GEA, the small businesses must have a staff capacity of six to 30 and annual turnover of between GH₵150,000 and GH₵6 million and medium enterprises of 31 to 100 staff capacity and annual turnover of between GH₵6 million and GH₵18 million.

Also, for SMEs to access support from the Exim Bank, it must be registered with the Registrar General’s Department, must be in operation for at least 24 months, must have met all tax obligations, VAT and employee social security payment and must source at least 60 per cent of its raw materials locally among others.

Some of the SMEs who spoke to Diamondfmonline.com after the engagement commended the government for coming out with such an initiative. They also called on the government to Fast Track the process to enable them receive the money on time.

Story By: Alhassan Yakubu |www.diamondfmonline.com |Ghana.