Gov’t commits GH¢100m financing for SMEs

Ibrahim Mohammed Awal, Minister for Business Development

The Business Development Minister says a GH¢100 million capital fund for about 5000 Small and Medium Scale Enterprises (SMEs), and startups, will be created in 2019.

Speaking at the 2nd Ghana SMEs and Young CEO’s Summit, the sector minister revealed SME’s will also be exempted from the payment of taxes for a period of three years.

According to Mohammed Awal, this forms part of moves by the government to ensure that SMEs remain competitive in the Ghanaian market.

“Access to financing is very important. This year, we supported 1,350 with financing, next year we’re going to spend GH¢100 million to support 5000 of them with 10 per cent below interest rates,” he said.

Meanwhile, Founder and CEO of McDan Shipping Ltd, Daniel McKorley, has lamented what he described to be the shame of Ghana’s top 5 SMEs not being within the million dollar bracket. He wants a holistic approach to improving the lots of SMEs and startups in the country.

CEO of the Chief Executives Network Ghana, Ernest De-Graft Egyir who believes a special ministry for SMEs will help the government focus more on the industry.

Mr De-Graft Egyir wonders how a department under the ministry of trade, NBSSI be tasked with the onerous responsibility regarding the promotion and development of Micro and Small Enterprises sector in Ghana.

A 10-year master plan, according to him, will “trigger a major paradigm and structural shifts towards an entrepreneurial economy. This master plan, he argues, will address the main constraints of SMEs and put forward a comprehensive strategic plan for the sector.”

The 2ND Ghana SME and Young CEOs Summit themed, “Corporate Leadership Governance & Technology: Strong Pillars for Business & Economic Growth,” was organized by the Chief Executives Network Ghana in partnership with Deloitte & the Ministry of Business Development.

The Summit was to foster knowledge acquisition, learning, partnerships and synergies that drive improvement in both personal and organizational performance.

This year’s edition addressed the most important issues facing the leadership of corporate Ghana – in both the private and public sectors. Key areas that were covered include Corporate Leadership Governance for Business Growth, the Impact of the Fourth Industrial Revolution in SME Banking & Finance, Women in Leadership & Enterprise Development, as well as Business Scale-Up: Realities, Challenges and Success Stories.