Small and Medium Scale Enterprises (SMEs) are the backbone of Ghana’s economy, driving manufacturing, growth, and job creation, according to Finance Minister Dr. Mohammed Amin Adam.
In an address at the 3i Africa summit held in Accra, Dr. Adam highlighted the pivotal role that SMEs play in propelling the nation’s economic engine. With SMEs constituting a staggering 92% of manufacturing, contributing to 70% of growth, and providing 80% of jobs in Ghana, it’s evident that these businesses are not just integral but essential to the country’s economic fabric.
Despite their undeniable significance, SMEs face formidable challenges, with one of the most pressing being access to financing. Dr. Amin Adam emphasized that insufficient funding continues to impede the acceleration of growth and development across the African continent.
However, Dr. Amin Adam also presented a solution-oriented approach, emphasizing the importance of bolstering the fintech infrastructure to enhance the efficiency of capital delivery to SMEs while minimizing risks for financial institutions.
“In my capacity as Ghana’s Finance Minister, I am steadfastly committed to harnessing the potential of our nation’s fintech landscape to drive sustained economic growth and progress. By leveraging the collective knowledge, innovation, and dynamism of our fintech sector, we can unlock new opportunities, generate employment, and accelerate progress towards our overarching development goals. To that end, I humbly ask that we unite and seize every opportunity to harness the transformative power of fintech and build a more inclusive, prosperous, and resilient Africa for generations to come.”
Dr. Amin Adam
The Finance Minister’s remarks shed light on the government’s commitment to addressing this critical issue. He outlined forthcoming strategies aimed at amplifying support for SMEs, including direct lending, providing guarantees to financial institutions, reducing borrowing costs, and fostering skills and innovation within the SME ecosystem through fintech interventions. These initiatives reflect a holistic approach to tackling the multifaceted challenges hindering SME growth.
Government’s Efforts Is The Recognition That Empowering SMEs
Central to the government’s efforts is the recognition that empowering SMEs isn’t just about injecting capital; it’s about creating an enabling environment where these businesses can thrive. By facilitating access to finance and nurturing a conducive ecosystem for innovation and skills development, Ghana aims to unleash the full potential of its SME sector, driving sustainable economic growth and fostering job creation.
Moreover, the emphasis on leveraging fintech solutions underscores Ghana’s recognition of the transformative power of technology in advancing financial inclusion and economic development. By harnessing the capabilities of fintech, the government seeks to bridge the gap between SMEs and formal financial services, unlocking new opportunities for growth and expansion.
For his part, President Akufo-Addo noted that Ghana’s e-government infrastructure has made remarkable strides in the realms of fintech and financial inclusion and stands out as one of the best on the continent.
The President believes that e-government initiatives, such as the Ghana Card, Ghana.gov portal and mobile money interoperability, have reshaped the landscape of public service delivery, and expanded financial inclusion to heights that were once thought unimaginable.
With some seventeen million of fellow citizens now possessing a digital ID linking them seamlessly to the critical services they need to thrive in the modern world, he said, the Ghana.gov portal has facilitated transactions worth some GH¢1.6 billion since its inception in 2019, improving revenue collection, reducing corruption, and creating a more transparent and accountable system of governance.
President Akufo-Addo added further that with transactions exceeding GH¢900 billion annually, Ghana boasts one of the highest mobile money penetration rates in the world, which is further proof of the ingenuity and adaptability of the people.
President Akufo-Addo said the theme of the summit resonates deeply with the aspirations and dreams of the continent, which makes the gathering “not just a meeting of brilliant minds but a resounding clarion call to action and a summons to each and every one of us to rise to the challenge and seize the momentous opportunities that lie ahead.”
“Our fintech regulatory environment has become a hotbed of innovation and competition, attracting the best and brightest minds from across the continent and beyond. And our digital lending platforms have disbursed billions of cedis in loans to micro, small, and medium enterprises, fueling job creation, economic growth, and the rise of a vibrant and dynamic entrepreneurial ecosystem.”
President Akufo-Addo
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