Kosi Yankey-Ayeh, CEO of the Ghana Enterprises Agency (GEA) has disclosed that the government has allocated over GH¢800 million towards strengthening and developing the country’s micro, small, and medium enterprise (MSME) space since 2017.
According to the CEO of the Ghana Enterprises Agency, the significant investment by the Akufo-Addo’s government in the sector has supported more than 900,000 MSMEs across the nation, playing a crucial role in driving economic growth and prosperity, particularly in the face of global economic difficulties caused by the COVID-19 pandemic and the Russia-Ukraine conflict.
Mrs Kosi Yankey-Ayeh made this known when speaking at the 2023 MSME Day, themed “Building resilient and sustainable MSMEs to create one million jobs”. She emphasized the positive impact of the investment, with beneficiaries witnessing business development and communities benefiting from the resultant growth.
Recognizing the accomplishments achieved so far, Yankey-Ayeh stressed the need for continued efforts to bring more entrepreneurial dreams to life.
As the apex government agency mandated to promote and develop the MSME sector, the GEA remains committed to strengthening the capacity and competitiveness of MSMEs, maximizing their contributions to Ghana’s economic and social development.
The agency has implemented various initiatives, including training and capacity-building programs, business advisory services, and financial assistance, equipping MSMEs with the necessary tools for growth. The GEA’s aim is to support long-term success for these businesses.
Strategic Partnerships with Regulatory Bodies
Through strategic partnerships with regulatory bodies such as the Food and Drugs Authority, the GEA has streamlined bureaucratic processes, reducing constraints faced by MSMEs in formalizing and mainstreaming their operations.
By providing access to financing, mentorship, training, and networking opportunities, the GEA aims to help entrepreneurs turn their ideas into thriving businesses, aligning with President Akufo-Addo’s vision for entrepreneurship and economic progress.
The government’s continued commitment to the MSME sector reflects its recognition of the pivotal role played by these businesses in shaping Ghana’s economic landscape. With ongoing support and an enabling environment, MSMEs are poised to contribute further to the country’s growth and prosperity.
Micro, small, and medium enterprises (MSMEs) provide over 80% of global manpower and are a major contributor to Gross Domestic Product (GDP). In Ghana, the MSME sector is estimated to employ more than 80% of the workforce and generates over 70% of GDP. Data from Ghana’s Registrar General’s Department (RGD) indicates that 92% of businesses are registered as MSMEs. The majority of businesses within the MSME sector are mainly sole proprietorships, and include small retailers, market women, farmers, and artisans.
Axiomatically, MSMEs have the potential to accelerate economic development necessary for wealth creation and poverty reduction. This is due to the sector being the largest employer of vulnerable groups such as women, youth, and low-skilled workers, in particular, who are most likely to be financially excluded.
Despite government’s efforts, the sector is fraught with several challenges. The poor state of business support infrastructure adversely affects the development of MSMEs. These constraints include the lack of a national address system, national centralized identification system, all-year-round motorable road network and transportation system, warehousing facilities, and the availability of reliable and affordable power, water, and telecommunications infrastructure.
The classification of an MSME has been in contention for some time. In Ghana, several microenterprises still do not fit adequately in the categories they are classified in and are therefore marginalized through the registration requirements of their businesses. This also places their activities outside the scope of classification and valuable data is not collected.
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