MSMEs in Ashanti not benefiting from government's interventions

Kumasi, June 20, GNA - Micro, Small and Medium Scale Enterprises (MSMEs) in Kumasi, On Thursday said they are not benefiting from the numerous Government financial interventions aimed at expanding businesses. They complained that, most of them were encountering frustrations and impediments in accessing the facilities to enable them expand and improve their business operations.

At an outreach road-show programme aimed at creating a platform for the MSMEs to interact with financial service providers in Kumasi on Thursday, the entrepreneurs said, the government's interventions were not yielding the desired results. The road-show, dubbed "customizing financial and non-financial services for SMEs in Ghana", was organised by the Ministry of Trade, Industry, Private Sector Development and President's Special Initiatives as part of effort to create awareness among entrepreneurs on the MSME project. It is being implemented by Government with financial support from the World Bank.

The 150 million-dollar MSME project, which began in 2006, was basically to help among other things, reduce business constraints faced by MSMEs, and build an integrated market access. The business operators mentioned the micro and small loan scheme, export development and investment fund and noted that most of them have not been able to access them. They called on the government to develop clear cut policies that would make it easier for SMEs to benefit from such interventions.

Mrs Gifty Ohene-Konadu, Deputy Minister for Trade, Industry, Private Sector Development and PSI, in-charge of SMEs, said the interventions showed government's resolve to create the enabling environment for businesses to grow. She said about 90 per cent of Ghanaian businesses were SMEs and there was the need to create cost effective interventions to reduce some of the constraints that hindered their development and growth. Mrs Ohene-Konadu said the MSME project was expected to ginger growth in the sector, provide employment and build capacities of financial service providers to assist SMEs.

Miss Marilou Uy, Director, Finance and Private Sector Development of World Bank Africa Section, said the problem of access to finance by SMEs was still a big issue in Africa. She, however, said with the introduction of modern technology, most SMEs would be able to access credit facilities to expand their businesses. Mr Francis Osei Kusi, the Project Coordinator, said the project was doing it best to address all the problems associated with SME operations in a comprehensive and sustainable manner.