Editorial: Positioning MSMEs to play critical roles in the economy

MSMEs account for over 90 percent of businesses in Ghana and provide around 80 percent of total employment, making them indispensable to the country’s economic stability and growth.

At the 2024 Greater Accra Annual Regional Network of Entrepreneurial Development and Employment Promotion Conference, the Country Director at GIZ Ghana, Dr. Dirk Aßmann, reiterated the importance of collaboration in strengthening the micro, small and medium enterprises (MSMEs) ecosystem.

In spite of the favourable statistics, Dr. Aßmann observed that these enterprises often face challenges such as limited resources, market access and regulatory hurdles.

“Over the past decade, stakeholders – including public and private business development services, international donors, development partners and financial institutions – have worked tirelessly to support SMEs. Yet a common challenge remains: the need for greater coordination to avoid duplication of efforts and inefficiencies.”

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Consequently, Dr. Aßmann emphasises that a unified approach would not only improve service delivery but also boost economic growth and job creation across Ghana. He however cautioned against overemphasis on workshops and training sessions, which can sometimes distract MSMEs from their core activities.

“We have all seen instances where SMEs spend more time attending multiple workshops provided by various organisations instead of focusing on growing their businesses.”

At the same event, Ambassador of the European Union (EU) to Ghana, Irchad Ramiandrasoa Razaaly, expressed his admiration for the country’s resilience and the role of MSMEs in driving economic recovery.

To combat unemployment challenges the country faces, Ambassador Razaaly further emphasised that investment in skills is not only important for Ghana’s future but also the entire African continent’s.

He also expressed confidence that Africa will become a major economic powerhouse, both due to its demographic growth and its increasing role in global economic development.

For his part, Dr. Stephen Amoah, Deputy Minister of Finance, acknowledged the economic challenges Ghana faces is particularly due to its import-driven economy and global economic crises which impact the nation.

The 2024 Greater Accra Annual Regional Network of Entrepreneurial Development and Employment Promotion Conference closed with a strong call for coordinated efforts to unlock the full potential of MSMEs – and underscored the critical importance of SMEs in Ghana’s economic recovery and future growth.