Efforts to tame inflation are yielding positive results – BoG Governor

The Governor of the Bank of Ghana, Dr. Ernest Addison, has reiterated that efforts to tame inflationary pressures are yielding positive results.

According to him, the Central Bank has adopted policies and measures such as eliminating monetary financing of the budget and rebuilding foreign currency buffers to achieve these gains.

Speaking at the launch of the government’s SME Growth and Opportunity Programme on July 16, Dr. Ernest Addison said, “the bank is also taking steps to implement a comprehensive strategy to ensure the rebuilding of capital buffers of financial institutions post-DDEP and establishing the Ghana Financial Stability Fund to provide additional support to the financial sector.”

“These measures are beginning to yield positive results, and signs of stabilization and recovery in the Ghanaian economy are emerging,” he added.

The BoG Governor also recognized the potential role of SMEs in Ghana and emphasized the importance of providing them with avenues to access finance to propel their growth.

“I am positive that the current positive developments in the economy, together with our survey findings, when implemented effectively along with sustained improvements in the overall macroeconomic conditions, should benefit the SME sector in the long run.”

As part of efforts to propel the growth of SMEs, the government has launched the SME Growth and Opportunity (GO) programme, mobilizing a total of GH¢8.2 billion to provide financial and technical support to the sector in a major boost to small and medium enterprises (SMEs).

The initiative is aimed at strengthening the country’s private sector and propelling the nation toward its annual growth potential of approximately 5 percent.

SMEs form the backbone of Ghana’s economy, accounting for 92 percent of existing companies, 85 percent of manufacturing jobs, and 70 percent of GDP.

Recognizing their crucial role, the government has designed the SME GO programme to address sector challenges, particularly in accessing finance and enhancing capacity.

MA/NOQ