‘SMEs must survey extra credit avenues’

The Treasurer of Barclays Bank Ghana has advised local entrepreneurs to explore other sources of raising capital to improve their businesses.

According to George Asante, Small and Medium-scale Enterprises (SMES) should consider partnership, equity and guarantee investment to expand their capital base and become profitable.

He also stressed the need for companies to adopt laid-down procedures such as good record-keeping and accounting systems to grow their businesses.

George Asante was speaking at a forum organized by the Ghana-Canadian Chamber of Commerce (GCCC) in Accra to discuss strategies, which would support SMEs.

Companies should desist from securing capital in foreign currencies when local interest rates are high as they stand to lose when exchange rates are adjusted, he said.

“Think incremental and partner people who would grow with you because the business would have to go though different phases. Therefore, it is important to have partners at the early stages of operation that can support at the subsequent stages,” Mr. Asante noted.

Yoofi Grant, Investment banker with Databank, also tasked small enterprises to develop their human resource in addition to fiscal capital in order to remain competitive.

He also cited high operation cost, stringent tax regimes and inadequate power supply as some factors which hinder the profitability of small-scale businesses.

Christopher Thornley, Canadian High Commissioner, said his government would partner Ghana in areas such as agriculture and others, where both countries have comparative advantage.

He stressed the importance of establishing strong commercial relationship between Ghana and Canada and commended government’s effort at addressing current economic challenges.

Herbert Morrison, GCCC President, noted that SMEs should not be allowed to collapse due to lack of credit.