Government allocates GH¢8.2 billion to support SMEs

The government has earmarked GH¢8.2 billion to support Small and Medium Scale Enterprises (SMEs) in the country under the Growth and Opportunity Initiative for Small and Medium Enterprises project.

Dr Stephen Amoah, Deputy Minister for Finance, who announced this, said the key driving agencies for the initiative would include the Ghana Enterprises Agency (GEA), Ghana EXIM Bank, the Development Bank Ghana (DBG), and the International Finance Corporation (IFC).

The GEA will receive Ghc200 million to provide support to high-growth SMEs through small-scale grants and loans with highly subsidized rates for up to two years.

The Ghana EXIM Bank will also be supported with GH¢500 million to offer SMEs highly subsidized financial support for both capital and operating expenditures and offer capacity building to programme beneficiaries.

The Development Bank Ghana will also commit a total of about GHs 1.2 billion to support SMEs through participating financial institutions.

Dr Amoah, speaking at a stakeholders’ engagement meeting in Kumasi, said the initiative, led by the Ministry of Finance and Ministry of Trade and Industry, aimed to address financial constraints faced by Ghanaian small-scale businesses and provide them the opportunity to access financial support to boost their business activities.

He said it was important to break barriers confronting SMEs growth, adding that fostering partnerships, mobilizing diverse financial resources, and creating a conducive environment for SME growth, was what the initiative sought to offer.

Recognizing that SMEs constitute approximately 90 percent of businesses and contribute around 70 percent to the country’s GDP, Dr. Amoah underscored the government’s commitment to supporting SMEs to expand their operations.

He urged journalists to promote the SMEs Growth and Opportunity programme by encouraging eligible businesses to apply for the initiative, which was non-partisan.

Participants at the meeting, who were guided on the application process and eligibility criteria, expressed appreciation for the initiative and its potential to empower their businesses.