Government urged to increase support for SMEs

Bolgatanga, March 4, GNA - Mr. Cletus Kosiba, Executive Director of the Association of Ghana Industries (AGI), has urged government to increase support for Small and Medium Enterprises (SMEs), to ensure the country's economic growth.

He said that even though SMEs created industries, employment, and stimulated export, numerous constraints have bedevilled their operations. Mr. Kosiba was speaking at a validation workshop, dubbed " AGI SMEs Agenda 2008" and organised by AGI, to formulate a policy proposal for the growth and development of SMEs in the country, in Bolgatanga, Upper East Region.

He noted that SMEs formed the backbone of the country's economy and it was against this background that the association was developing the AGI SMEs Agenda 2008. Mr. Kosiba said that the association was organising similar workshops throughout the country, and the outcome would be incorporated into the National Authority of the AGI to be forwarded to government for consideration as a bill to enhance the operations of SMEs. He said the "fact-based agenda" would identify priorities and present a plan of action for better business environment, to unleash full potentials of small companies in all regions in Ghana. Mr. Kosiba said that the AGI SMEs Agenda 2008 would include "processing of views from 1,000 chief executives and owners of SMEs from all the regions, analysis of infrastructure, regulatory and administrative framework and bench marking the business environment in each region."

He said that the Agenda would ensure the justification of findings of regional workshops, bringing together SMEs, private sector representatives and government officials, recommendations for improved business environment in the country and the consolidation of suggestions and prioritization at a national SMEs conference to be held in Accra. Mr. Kosiba said this would enable the association to present practical policy suggestions to government for an improved business environment in the country.

Mr. Kosiba said that during Election 2008, the intentions of the AGI were made to the various presidential candidates, who promised to fulfil the objectives if they won power, and expressed optimism that President John Evans Atta Mills would consider the views of the association. He said the National Investment Bank, Ernest and Young Company, GTZ, UNIDO were providing technical and financial assistance to the AGI project.

Mr. Samuel N'lary, Chief Director at the Regional Coordinating Council, commended AGI for its initiatives to support the economy. He reminded Ghanaians that the private sector was the engine of growth of the economy and concerted efforts must be made to enhance the sector.

Mr. N'lary said government had created an enabling environment, by formulating policies, providing infrastructure, capital and enacting legislations such as Public Procurement Act and Internal Audit Act to promote SMEs.