Government gives 270 SMEs GH₵‎ 35m grant

The Ghana Enterprises Agency (GEA), on behalf of the government, has initiated the distribution of GHC35 million in grants to approximately 270 carefully chosen micro, small, and medium enterprises (MSMEs). These grants are disbursed as part of the Technical Assistance and Grant Programmes, which are integral to the Ghana Economic Transformation Programme (GETP).

These financial allocations are intended to bolster a range of projects, spanning from machinery and equipment procurement to working capital infusion and investments in last-mile infrastructure.

Categorically, the Technical Assistance and Grant Programmes encompass three divisions: Youth in MSME, Women MSME, and SME High Growth Programmes. Each of these initiatives is financially backed by the World Bank through the Ghana Economic Transformation Project.

Minister of Trade and Industry, Kobina Tahiru Hammond, said at the grant-signing event in Accra, that this endeavour aligns with the government's commitment to invigorate local businesses and elevate their standing as robust contributors to economic advancement and transformation.

The programme is in harmony with the trade ministry's overarching strategy to cultivate SMEs into drivers of substantial growth.

By concentrating on a deliberate and strategic approach, Ghana aims to metamorphose its economic landscape, bolstering the establishment and progression of industries spanning diverse sectors.

This vision dovetails with the government's meticulous blueprint designed to enhance the competitiveness of local MSMEs, positioning them to capitalise on prevailing and forthcoming global or regional trade opportunities, including the African Continental Free Trade Area (AfCFTA) initiative.

Kosi Yankey-Ayeh, CEO of GEA, underscored the achievements realised through the Ghana Economic Transformation Project. Notably, over GHC65 million has been allocated and disbursed to around 800 SMEs between September 2021 and January 2023 under the aegis of GETP.

Of significant import, nearly 40% of the disbursed funds have been directed towards enterprises led by women.

The effectiveness of the scheme is evident, as three successful interventions have been executed during the COVID-19 Response Grant Programme phases 1 and 2, in addition to the current SME High Growth Programme.

The SME High Growth Programme, introduced in October 2022, prioritizes technical support, entailing an intensive four-month business management training and capacity enhancement, complemented by a structured mentoring plan.

Having commenced full-scale implementation nationwide since May 2023, the program aims to aid 2,000 high-growth SMEs, catalysing enhanced productivity and competitiveness.

This approach is anticipated to propel these businesses to amplify their operations, elevate sales, and establish sustainable employment opportunities.

The Youth in MSME Programme targets enterprises owned by individuals aged 18 to 40, while the Women MSME Programme is exclusively dedicated to fostering gender diversity and empowering female-led enterprises within the business sphere.

The grant initiatives cast a wide net, encompassing MSMEs across diverse sectors such as agriculture/agro-processing, construction, education, food and beverages, healthcare, ICT, manufacturing, textiles and garments, tourism and hospitality, locally-produced trade and commerce, as well as transport and logistics.