Promptly set up local credit rating agency - KPMG to government

Accounting firm KPMG, in a 2024 pre-budget survey, has urged the government to expedite the establishment and operationalisation of a Domestic Credit Rating Agency.

The objective is to empower finance providers to assess the creditworthiness of Micro, Small, and Medium Scale Enterprises (MSMEs) in order to facilitate improved access to credit.

The survey emphasises the pivotal role of MSMEs in the Ghanaian economy while underscoring their enduring challenge of accessing affordable financing.

KPMG's report advocates the establishment of a sustainable mechanism for MSMEs to access affordable finance and calls for the expansion of programs incentivising commercial banks to allocate funds to MSMEs through risk-sharing mechanisms.

Recognising the government's efforts in MSME financing and capacity building, the report highlights the need for continued regulatory reforms to simplify business processes, reduce costs, and enhance accessibility to commercial financing for MSMEs.

The survey findings stress the importance of prioritising policies in the 2024 Budget that foster inclusive green growth.

These policies aim to strengthen local businesses, promote exports through industrialisation, mechanise agriculture for food security, and invest in infrastructure development.

KPMG expressed the hope that the insights provided will inform government deliberations and contribute significantly to the formulation of the 2024 Budget.