Vice President in charge of SMEs at the Association of Ghana Industries, Humphrey Dake, has indicated the preparedness of small scale enterprises to latch onto the opportunities of the African Continental Free Trade Agreement (AfCFTA).
With these SMEs making up some eighty percent of the economy, Mr. Dake noted that, institutions such as the National Board for Small Scale Industries (NBSSI), has supported the capacity building of the SMEs.
As a consequent, SMEs will have a huge role to play with commencement of the continental free trade programme.
“It is quite exciting to see what government is doing regarding converting the NBSSI to an authority so as to leash out managerial support to SMEs.
“Generally the Ghanaian economy undoubtedly is about 80% of SMEs and there are essential products that are imported to this country by about 20% of the business entities that fall under some SMEs.
“So some level of resilience is in the system. Now we need to prioritize the products that are being exposed to the AfCFTA”.
Additionally, he explains the association will also desire government to be more operational and effective with their programmes targeting these businesses with the intention of stimulating growth, especially as the pandemic takes its course.
Some of these projects include the ¢2 billion Credit Guarantee Scheme for SMEs and the ¢100 billion Ghana Cares Programme.
On his part, the Chief Executive Officer of the AGI, Seth Twum-Akwaboah, opined that these funds could help businesses to have access to credit to grow.
“Government has also pledged with a ¢2 billion facility; the guarantee facility. We are already deeply involved and we’re trying to see how we can [help] our members access this facility.
“But then we need to prepare the companies for them to access it. Otherwise, the banks may not even give out that loan.
“And, therefore, our role is important and that’s one area we’re hoping to help our members. So we will continue to engage government to ensure all other government support for the industry is done,” he added.
Meanwhile, AGI have expressed delight about the successful export of goods from two of its members, thus Ghandour Cosmetics and Kasapreko under the continental free trade agreement.
Speaking in an interview, Mr. Twum-Akwaboah labelled it as the game changer for African industries to recover their operations post covid-19.
“It’s our expectation regarding the implementation of AfCFTA, from all indications it’s going to be a game changer in the whole dynamic of things.
“So I think very well that going into 2021, with AfCFTA coming on board, Ghanaian businesses should take advantage of the opportunities that are going to be available.
“We also have a bit of a threat because our market is going to be opened to imports from other parts of Africa. So it depends on how we will strategize and take full advantage of the thing,” he stated.
World Bank reveals that, AfCFTA pact connects 1.3 billion people across 55 countries with a combined gross domestic product (GDP) valued at US$3.4 trillion.
It also has the potential to lift 30 million people out of extreme poverty, but achieving its full potential will depend on putting in place significant policy reforms and trade facilitation measures.
