Ghanaian Times: Essential support for businesses amid COVID-19

The coronavirus (COVID-19) pandemic is causing a global health emergency nightmare as well as a global economic slowdown.

Experts say trade, investment, growth, and employment are all being affected and the crisis would have an impact on the world economy in a very bad way.

In fact, the situation has presented governments around the world with the challenge of assisting Small and Medium Enterprises (SMEs) to survive the crisis.

The situation no doubt, is very daunting because no one can predict the full economic impact of the COVID-19 pandemic. Worse still, all economic forecasts look very worrisome, surrounded by so many uncertainties that could turn out even worse in reality.

This is because health experts are predicting that the COVID-19 outbreak is going to last for a long time in many countries around the world and that is going to have devastating effect on businesses especially SMEs.

The International Labour Organisation (ILO) highlights in its third COVID-19 monitor that “while small enterprises around the globe play a major role as providers of jobs, particularly in low and middle-income countries, they often lack access to credit, have few assets and are the least likely to benefit from fiscal measures in general and from the stimulus packages amid the current crisis.”

The ILO asserts further that, joint global action and dedicated support to SMEs is, therefore, even more crucial during these times of COVID-19.

It is against this backdrop that we commend the government for taking the bold initiative to offer GH¢600million stimulus package to SMEs across the country.

The amount, which is to be disbursed through the National Board for Small Scale Industries (NBSSI), is expected to support more than 200,000 businesses under the COVID-19 stimulus package for SMEs.

President Nana Addo Dankwa Akufo-Addo, on April 5, announced a soft loan scheme of up to GH¢600 million for SMEs, which would sustain the country’s affected industries and address the disruption in economic activities caused by the COVID-19 pandemic.

This is in view of the impact of the disease on Ghana’s economy, which is expected to cost in excess of GH¢9 billion, leading the government to set aside a stimulus package of GH¢1 billion for industries.

While applauding the government for creating the fund, we urge the NBSSI to expedite action on the disbursement of the package to the SMEs to enable them address the disruptions that they may have encountered during this difficult time.

The support, no doubt, is very essential and coming at an opportune time for most of the SMEs whose operations are under stress and jobs are threatened due to the COVID-19.

Indeed, it is a welcome relief that the SMEs must embrace and use it to support the country to come out of this crisis economically stronger.

Never before has the government offered such soft loans to SMEs in the country and so the least industries can do, is to reciprocate the gesture by putting the packages to good use and endeavour to pay back the loan in good time.