Small and Medium-sized Enterprises (SMEs) form the backbone of Ghana’s economy, contributing significantly to job creation, industrialization, and economic growth.
However, access to finance and modern equipment has remained a major hurdle for many of these businesses. With Ghana’s SME financing gap estimated at $4.8 billion, many enterprises are unable to scale production, improve quality, or access international markets.
To address this challenge, the African SME Network for Exchange and Trade (AfNEXT), an initiative spearheaded by the German Development Cooperation (GIZ) in partnership with the Association of Ghana Industries (AGI), has delivered a lifeline.
More than 200 pieces of modern machinery and equipment have been procured and co-financed for over 50 SMEs across the country, providing a direct response to the financing and capacity challenges in the sector.
AfNEXT: Bridging the Finance and Equipment Gap
AfNEXT was launched under the Special Initiative “Decent Work for a Just Transition,” operating under the brand Invest for Jobs. It is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ, in collaboration with AGI and sequa gGmbH.
Through the initiative, SMEs across Ghana received modern production equipment, technical support, and in-factory coaching tailored to their specific needs. This intervention not only enhanced production capacity but also improved efficiency, reduced resource waste, and expanded market access for participating businesses.
According to Mr. John Duti, Team Leader of Invest for Jobs at GIZ Ghana, the new equipment is enabling SMEs to cut down on wastage of water, electricity, and raw materials, thereby reducing costs while promoting eco-friendly production.
“The installation and use of modern equipment enables SMEs to improve their efficiency while saving money through the reduced wastage of utilities. This makes an important contribution to a Just Transition where our economy becomes not only more inclusive but also more eco-friendly.”
Mr. John Duti
Training and Technical Assistance for Competitiveness
Beyond equipment, AfNEXT provided extensive training for personnel from participating SMEs in crucial areas such as quality management, food safety, marketing, occupational safety, and international trade requirements. This was supported by in-factory coaching sessions, ensuring that SMEs could maximize the benefits of their new equipment and adopt best practices in production.
AGI’s Director of Finance and Administration, Mr. Nathaniel Quarcoopome, emphasized that the AfNEXT project went beyond providing physical assets.
“Beneficiaries of the initiative gained critical skills and knowledge in areas essential to modern business success. These competencies not only improve operational standards but also build resilience and sustainability in an increasingly competitive market.”
Mr. Nathaniel Quarcoopome
Opening Doors to Global Markets
One of AfNEXT’s standout features was its international exposure component. Ten export-oriented Ghanaian enterprises participated in joint training and coaching sessions with SMEs from Egypt and Ethiopia, sharing knowledge and best practices in export readiness. Selected businesses also attended trade fairs across Europe, Africa, and other regions, gaining firsthand experience in global markets.
Through this network, Ghanaian SMEs were able to establish connections with international buyers and position themselves competitively in the export market. For many of these enterprises, this marked the first step towards scaling beyond local markets and integrating into global value chains.
The holistic approach of AfNEXT—blending equipment financing, training, and international exposure—has already started yielding results. The project is expected to create more than 300 decent jobs across different sectors of the economy, reinforcing the role of SMEs as engines of employment.
According to the CEO of AGI, Mr. Seth Twum-Akwaboah, AfNEXT represents “the power of integrated support—combining financial assistance through equipment plans with capacity building and international exposure. This holistic approach ensures not just short-term fixes but long-term growth and improved market access.”
Scaling the Impact Beyond AfNEXT
The Ghana Enterprises Agency (GEA), represented by Mrs. Philomena Dsane, has also commended the initiative for its discipline and purpose. She suggested that beneficiaries of AfNEXT be integrated into GEA’s mentorship initiatives to ensure continuity and scaling. “Behind each figure is a team that’s learned, invested, and adapted in a Ghanaian product that is now better prepared to compete,” she said.
This mentorship, coupled with ongoing advocacy from AGI for policies that foster innovation and competitiveness, is expected to sustain the momentum beyond the project’s conclusion.
While Ghana’s SME financing gap remains vast, initiatives like AfNEXT demonstrate how targeted interventions can create lasting impact. By bridging the gap between financing, technical know-how, and market access, AfNEXT has offered a practical model for supporting SMEs.
The combination of 200 modern machines, skilled manpower, and international trade opportunities will not only boost SME productivity but also strengthen Ghana’s industrialization drive. With more such initiatives, the $4.8 billion gap may be narrowed, paving the way for a resilient, competitive, and globally integrated SME sector.
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