At the recent MTN Ghana Business Executive Breakfast, executives of MTN Ghana reiterated their unwavering commitment to supporting the growth of local SMEs in Ghana.
Held under the theme “Bridging the Credit Risk Gap for SMEs in Ghana,” the event emphasized the critical role of strategic partnerships in fostering a robust SME ecosystem.
In his keynote address, Mr. Stephen Blewett, Chief Executive Officer of MTN Ghana, underscored the significance of facilitating SME access to funds through strategic collaborations. He highlighted that partnerships with banks, microfinance institutions, and FinTech companies are crucial for developing a supportive ecosystem for SME financing.
These collaborative efforts, he noted, could lead to the creation of innovative financial products and services tailored specifically to the needs of SMEs. Such initiatives are vital for enabling SMEs to thrive and contribute meaningfully to the economy.
Mr. Shaibu Haruna, Chief Executive Officer of MobileMoney Ltd, elaborated on the company’s plans to develop digital solutions to support SME transactions and enhance financial inclusion. He emphasized that digital payment channels, such as MobileMoney, could play a pivotal role in profiling customers and providing customized solutions for accessing credit.
Mr. Shaibu Haruna cited the example of Qwikloan, a digital credit service that has reduced bureaucracy and mitigated credit risk issues, albeit acknowledging the presence of some defaulters.
“We have learned our lessons from Microcredit, and we are ready to provide a basic foundation for financial players to support the ecosystem. We need to evaluate how we use digital footprints to address issues around risk and progressively provide lending for SMEs. By leveraging digital technology, we can create a more inclusive lending ecosystem that supports the growth of SMEs in Ghana.”
Mr. Shaibu Haruna
Advancing SMEs Through Improved Financial Accessibility
Angela Mensah-Opoku, Chief Enterprise Business Officer of MTN, reaffirmed the company’s dedication to advancing small and medium enterprises through improved financial accessibility and technological empowerment. She stressed the importance of technology in addressing the challenge of assessing creditworthiness for businesses, which is crucial for driving growth.
Mensah-Opoku pointed out that technology helps standardize business processes and eliminates the need for cumbersome paper processing. “Digital disruption also involves changing what we believe are the standards for financial inclusion; using technology is an authentic way to go,” she added.
“MTN is open to collaboration across the SME value chains. We must work together to support informal SMEs seeking access to working capital for growth. Information asymmetry is a big challenge for them, and we need to be more inclusive. Digital insights and access to data will change the requirements for lending.”
Angela Mensah-Opoku
The MTN Executive Breakfast Meeting served as a platform for key stakeholders to explore solutions to bridge the credit risk gap for SMEs. The event highlighted the indispensable role of SMEs in Ghana’s economy and the need for comprehensive support to ensure their sustainability and growth.
SMEs are often described as the backbone of the economy due to their significant contributions to employment and economic diversification. However, they frequently face obstacles in accessing necessary financial resources, primarily due to perceived credit risks. The insights shared by MTN executives underscore the importance of addressing these challenges through collaborative and innovative approaches.
By leveraging partnerships, digital technology, and tailored financial solutions, the goal is to create a supportive environment where SMEs can flourish. The commitment shown by MTN Ghana to fostering such an ecosystem is a positive step towards ensuring that SMEs can overcome financial barriers and contribute more effectively to Ghana’s economic development.
The dialogue initiated at the MTN Executive Breakfast Meeting represents a critical step forward in the quest to bridge the credit risk gap for SMEs. As stakeholders continue to collaborate and innovate, the vision of a robust and inclusive SME ecosystem in Ghana becomes increasingly attainable.
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