MSME Day: AGI calls for sustainable support for MSMEs

On this International MSMEs day, the Association of Ghana Industries (AGI) is happy to join hands with the UN in celebrating MSMEs across the world. AGI re-affirms its commitment to the development of MSMEs in Ghana. Representing an estimated 90% of all businesses in Ghana, MSMEs in Ghana are key actors in job creation, revenue generation for Government and contributing to GDP through various economic activities. Many advanced economies today attribute their growth and success to the role of MSME in national development and Ghana is not an exception.

We reckon that there is a lot more MSMEs can offer, barring the numerous challenges that they face. For the past decade, the AGI Business Barometer has highlighted some of the constraints that keep stifling growth of MSMEs in Ghana. Access to credit and cost of credit remain two major decade-old bottlenecks that they face, yet available SME financing schemes have not been able to fill this void. For this reason, our MSMEs remain under capitalized. Our SMEs continue to yield to pressure from imports and unfriendly business regulations.

Covid-19 has also taken a significant toll on our local industry of which MSMEs were the worst hit. A number of these firms have had to suspend business operations with others downsizing to keep afloat. While we commend Government for the Ghc600 million relief package and the 50% subsidy on electricity, AGI believes the sustainability and timeliness of Government interventions are crucial for the continuity of business. We welcome efforts by Government to extend similar relief support to the large-scale enterprises as well.

We urge Government to implement policies that will help our MSMEs build resilience, local production capacity and medium-term growth. To this end AGI will continue to dialogue with Government to ensure a sustainable development of our MSMEs in Ghana. Our SMEs can continue to count on the advocacy and business development support of AGI and we urge you to cooperate with us to work towards improving the business environment for your businesses to thrive.

We also take the opportunity on this day of celebrating MSMEs, to thank Government and our development partners such as UNIDO, BUSAC FUND, NBSSI, Star Ghana, the E.U., GIZ, and colleague business Associations for your collective effort in supporting MSME development in Ghana.