The Ghana Export-Import Bank (GEXIM) has unveiled plans to establish a state-of-the-art food processing pilot plant in Accra.
This initiative aims to enhance the value addition capabilities of Small and Medium-sized Enterprises (SMEs) in Ghana, providing a significant boost to their growth and sustainability. The announcement was made by Ms. Rosemary Beryl Archer, Deputy Chief Executive Officer (CEO) of GEXIM, who described the project as a “golden moment” for Ghanaian SMEs and related sectors.
This new processing plant is a pivotal component of the government’s recently launched SME Growth and Opportunity (SME GO) initiative. The initiative is designed to provide both financial and technical support to SMEs with high growth potential.
According to Ms. Archer, the collaborative efforts between GEXIM and other agencies and stakeholders will provide SMEs with the necessary manufacturing solutions. These solutions will enable SMEs to test their production capabilities and scale up their ideas in a standardized, modern food processing environment.
GEXIM plans to leverage its extensive expertise and network to facilitate access to a range of financial and technical services tailored to meet the diverse needs of export-ready SMEs in Ghana. Ms. Archer emphasized the importance of a systematic approach to value chain development, aiming to eliminate the underlying causes of market underperformance. This approach is expected to increase profits and productivity for SMEs, thereby making them more resilient and sustainable in the face of various disruptions.
Ms. Archer expressed confidence that a collaborative approach, which provides integrated solutions to the challenges faced by SMEs, would significantly enhance their contribution to Ghana’s socio-economic development. This confidence is backed by data from the Ministry of Finance, which shows that SMEs account for 92% of existing companies, 85% of manufacturing jobs, and 70% of Ghana’s Gross Domestic Product (GDP).
Addressing Financing Challenges
The global business environment has been fraught with challenges, particularly in terms of access to financing. This has been a major impediment to the advancement of broad-based SME development. The government recognizes this issue and has highlighted the SME GO programme as a robust solution to support SME financing. The programme aims to bring Ghana closer to its growth potential of approximately 5%, as stated by the Ministry of Finance.
The SME GO programme, with a budget of GHS8.2 billion, is designed to assist Ghanaian SMEs in scaling up their operations and building their capacity. This, in turn, will make them more sustainable and competitive in the international marketplace. Beneficiary SMEs will have access to short- and medium-term flexible financing options, along with public policy optimization to help them secure the necessary resources for effective scaling.
The measures envisaged under the SME GO programme include the creation of a one-stop-shop for SMEs, which will streamline access to various resources. Additionally, the design of business enclaves will provide SMEs with fiscal incentives, financial resources, and shared technology. These measures are expected to foster an environment conducive to SME growth and development.
Meanwhile, this initiative, underpinned by the SME GO programme, promises to address critical challenges faced by SMEs, particularly in value addition and access to financing. By providing a comprehensive support system, GEXIM and its partners aim to enhance the competitiveness and sustainability of SMEs, thereby contributing to the overall socio-economic development of Ghana. The future looks promising for Ghanaian SMEs, as they are poised to leverage these new opportunities to scale their operations and make a more substantial impact on the national economy.
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