Govt releases one million dollars to support Small and Medium

Enterprises

Accra, Sept. 4, GNA - Mr Kwamena Bartels, Minister for Private Sector Development on Wednesday said government had released one million dollars to support Small and Medium Enterprises (SMEs) in the country. Mr Bartels, who was speaking at a meeting with members of the Africa Project Development Facility (APDF) Network in Accra to find ways of strengthening SMEs, said the payment was made from the Highly Indebted Poor Countries (HIPC) Fund.

He said it is the government's contribution toward a project it is undertaking with the African Development Foundation, which is also expected to contribute one million dollars.

The meeting was a follow up to a declaration at Elmina that proposed the establishment of proactive, independent and self-reliant structure to act as the mouthpiece of SMEs.

Problems discussed included, the need to identify banks that could finance SMEs projects and the protection of SMEs businesses against excessive taxation.

Mr Bartels, who did not seem to agree with some members' idea of establishing a special bank for SMEs, however accepted a compromise position of identifying some existing banks to handle their businesses. He said those banks could be made to be more committed when asked by government to bid to handle SMEs projects after which they could be designated SME banks.

The Minister agreed on the need to organise training programmes for financial and non-financial institutions on the way to handle SMEs and said the Ministry would fund a consultancy service to advise on the way forward for SMEs.

Touching on taxes, Mr Bartels said leakage is at present about 40 per cent down from 45 per cent in the past.

Ms Minerva Kotei, Business Development Officer of the APDF, said a team from the International Development Ireland Limited would organise a training programme for Ghanaian financial institutions on credit assessment and equity investment schemes for SMEs in October.

Dr Mrs Akua Adusei-Herbstein, Director of Akuaba Limited, said most enterprises have been evading taxes and called on the Internal Revenue Service to locate all small business organisations to collect taxes due since they were tarnishing the image of small scale entrepreneurs.