The Ghana Enterprises Agency (GEA) has signed a Memorandum of Understanding (MoU) with SanlamAllianz Ghana Insurance to expand access to insurance solutions for Micro, Small and Medium Enterprises (MSMEs), as part of efforts to strengthen business resilience, protect investments and promote sustainable enterprise development.

The partnership seeks to address a critical challenge facing Ghanaian businesses: the need to protect business assets and livelihoods against operational risks while improving their capacity to survive disruptions and sustain growth.

It also reinforces the importance of integrating risk management into enterprise development and financial inclusion initiatives.

The Chief Executive Officer of the Ghana Enterprise Agency, Ms Margaret Ansei says, the initiative aligns with the agency’s mandate to develop MSMEs through business development support, an enabling business environment and improved access to resources that enhance competitiveness.

”For us at Ghana Enterprises Agency, access to finance must go hand in hand with business protection and sustainability.”
CEO of GEA, Ms Margaret Ansei

Insurance Protection for Business Sustainability

MSMEs play an important role in Ghana’s economic activity, supporting entrepreneurship, livelihoods and employment across sectors, including retail, manufacturing, agriculture, food processing and services.

However, many smaller enterprises operate with limited financial reserves, leaving them vulnerable to unexpected losses arising from fire, theft, accidents, property damage and other business disruptions.

Insurance can provide a financial safety net by transferring specified risks to an insurer in exchange for premiums. Depending on the policy, coverage may help businesses recover from insured losses without relying entirely on personal savings, emergency borrowing or the sale of productive assets.

The need to expand insurance access is underscored by data from Ghana’s financial sector.

Ms. Margaret Ansei During the Signing of the MoU

The Bank of Ghana’s 2024 Financial Stability Review reports that insurance penetration, measured using gross premiums relative to gross domestic product, remained at 1.0 per cent in 2024, unchanged from 2023.

Using insurance service revenue under the newer IFRS 17 accounting framework, the reported penetration rate for 2024 was 0.63 per cent.

These figures indicate that insurance remains relatively small compared with the size of Ghana’s economy, highlighting opportunities to improve awareness, affordability and access to appropriate products.

For smaller businesses, the challenge is not simply whether insurance is available, but whether products reflect their operating realities, cash flows and exposure to risks.

The GEA and SanlamAllianz partnership therefore presents an opportunity to connect enterprise development support with practical risk management solutions, particularly for entrepreneurs who may have limited knowledge of available insurance products.

Closing Ghana’s MSME Insurance Gap

The collaboration comes amid wider efforts to strengthen financial inclusion and improve the resilience of Ghana’s business sector. Access to finance can help enterprises purchase equipment, expand inventory and enter new markets.

However, these investments may remain exposed if businesses lack adequate protection against unforeseen events.

The National Insurance Commission (NIC) reported that Ghana’s insurance industry paid approximately GH¢3.6 billion in claims during 2024. These payments demonstrate the role insurance can play in helping policyholders manage covered losses and financial obligations.

However, aggregate claims figures do not establish how much protection is reaching MSMEs specifically.

A Group Photograph Between Officials of the Ghana Enterprise Agency and the SanlamAllianz Ghana Insurance

The extent to which smaller enterprises benefit will depend on product accessibility, premium affordability, policy suitability and the efficiency of claims settlement.

”MSMEs face a range of risks in their day-to-day operations, and appropriate insurance solutions can help protect their investments, assets and livelihoods while giving entrepreneurs greater confidence to grow.”

CEO of GEA, Ms Margaret Ansei

The partnership could be particularly relevant to enterprises in agriculture and agrifood processing, where farmers, traders, processors and distributors face risks associated with weather events, storage, transportation and damage to equipment or stock.

For these businesses, insurance can complement access to credit, improved production practices and sound financial management. It cannot eliminate commercial risks or guarantee profitability, but appropriate cover can help reduce the financial consequences of insured events.

Strategic Partnerships to Drive Enterprise Growth

The GEA has emphasised that collaboration with private-sector institutions is essential to expanding the practical support available to Ghanaian enterprises.

Its partnership with SanlamAllianz Ghana Insurance provides a framework for linking business development services with insurance expertise, potentially helping entrepreneurs better understand risk management as part of their growth strategies.

”I commend SanlamAllianz Insurance for partnering with GEA to advance this important agenda. Strategic partnerships such as this enable us to broaden the range of practical support available to Ghanaian enterprises and strengthen the MSME sector.”

CEO of GEA, Ms Margaret Ansei

The effectiveness of the agreement will ultimately depend on how its objectives are translated into accessible services. Relevant considerations include the number of enterprises reached, the affordability of products, the range of risks covered and the quality of support provided when policyholders submit claims.

For entrepreneurs, understanding the relationship between insurance and business continuity is essential. A business that protects its productive assets may be better positioned to resume operations following an insured loss, maintain relationships with customers and suppliers, and protect the livelihoods that depend on its continued operation.

The broader economic benefits could extend beyond individual businesses. More resilient enterprises can support employment, maintain supply chains and contribute to local economic activity, particularly in communities where small businesses provide essential goods and services.

“Together with our partners, GEA will continue working to make Ghana’s MSMEs more resilient, sustainable, productive and competitive, contributing to inclusive economic growth and job creation.”
CEO of GEA, Ms Margaret Ansei

As Ghana pursues stronger private-sector-led growth, the GEA-SanlamAllianz agreement highlights the importance of treating business protection as a component of enterprise development rather than an afterthought.