BTA2023 Under a new initiative launched by the government, Small and Medium Scale Enterprises (SMEs) can now access a significant pool of funding to help them build their enterprises and solidify their position as the engine of economic growth.
The project, known as the SME Growth and Opportunity Programme (SME GO), aims to strengthen the relationship between the public and private sectors by fostering a more robust environment for SMEs, which in turn will drive economic growth inside the nation.
SMEs are eligible to apply for loans ranging from GH¢150,000 to GH¢2 million, with an interest rate of 9%.
Furthermore, GH¢150,000 in funding is available for the acquisition, upkeep, and restoration of machinery and equipment used in agro-processing.
In Accra, this was announced by Abena Osei Asare, Minister of State at the Ministry of Finance. She stated, “We have engaged 3,250 SMEs across the other 15 regions in the last three weeks.”
Funding sources
According to her, the Development Bank of Ghana is contributing roughly GH¢1.2 billion, while the government is providing GH¢700 million in support for Ghana Enterprise Agency (GEA) and Ghana EXIMBANK.
The African Development Bank has committed US$40 million, and the World Bank’s International Finance Corporation is pledging US$400 million to boost SMEs through Participating Financial Institutions (PFIs).
According to her, the partnership is a strong structure designed to support Ghanaian companies in overcoming their financial challenges.
Speaking at the Africa Trade House in Accra, Ms. Osei Asare was part of a program aimed at culminating the last meeting with SMEs’ owners following a month-long stakeholder sensitisation campaign for the SME GO initiative.
In order to make SMEs a long-term component of Ghana’s socioeconomic development, she stated that the government will support them.
“SMEs are the backbone of local and regional economies, but they face unsurmountable obstacles that prevent them from growing and expanding,” the speaker said.
SMEs have a lot of promise, and with the right assistance, they can overcome the nation’s post-colonial economic woes, according to Mrs. Osei Asare.
She noted that in order to enable these SMEs to foster innovation, generate employment opportunities, and promote economic growth, the SME GO will consciously offer access to funding, knowledge, and capacity-building initiatives.
“These events have allowed us to go into more detail about the requirements for eligibility and how to get help, including funding,” the spokesperson said.
Small and medium-sized enterprises (SMEs) in the construction, tourism, and hospitality sectors can obtain funding to expand their operations, according to the acting director of GEA’s financing and support services division.
Solving financial challenges
SMEs can obtain financing from Ghana Export and Import Bank (GEXIM Bank) at a reasonable concessionary rate, according to Bright Evans Darko, Head of the SME Department.
He declared, “To address the access to finance challenge that SMEs have had for a long time, we will provide SMEs with not only capital but also a concessionary interest rate of nine percent per annum.”
He begged companies to enrol in the scheme via the GEA, Consolidated Bank Ghana, and Ghana EXIM Bank.
In order to help SMEs grow their businesses, he continued, the bank will also offer technical and manufacturing support.
