Ghana’s SMEs to boost economic growth via govt support and global partnerships

Ghana’s Small and Medium Enterprises (SMEs) are positioned to take on a more significant role in the nation’s economic transformation, thanks to a series of strategic interventions by the government, complemented by international partnerships. This commitment was reaffirmed at the second Quarterly Economic Roundtable (QER) held at the University of Ghana, Legon, under the theme, “Driving Economic Growth Through Small and Medium Enterprises (SMEs).”

During the event, Finance Minister Dr. Mohammed Amin Adam emphasized the pivotal role of SMEs in Ghana’s economy, describing them as the backbone of employment, innovation, and productivity. He highlighted the government’s efforts to support SME growth through the launch of the SME Growth and Opportunity Programme (SME-GO) in July 2024. The initiative, backed by an GH₵8.2 billion investment, aims to address key challenges faced by SMEs, including limited access to finance, skills shortages, and restricted market opportunities.

“SMEs are at the core of Ghana’s economic strategy,” Dr. Adam stated. “Through the SME-GO programme, we are empowering these businesses to leverage opportunities within the African Continental Free Trade Area (AfCFTA) and beyond. The goal is for SMEs to contribute more significantly to GDP and job creation across the country.”

The SME-GO programme aligns with other government initiatives, such as the World Bank-funded Ghana Jobs and Skills Project and the Ghana Economic Transformation Project, both with US$200 million investments. These projects aim to tackle structural weaknesses in the SME ecosystem by providing skills development, promoting export linkages, and fostering a conducive environment for business reforms.

Strategic Partnerships Driving Growth

One of the key components of the SME-GO programme is its collaboration with global partners, including the African Development Bank (AfDB) and the International Finance Corporation (IFC). Dr. Adam highlighted the importance of these partnerships in enhancing the government’s efforts to make SMEs the engine of economic growth.

“Our strategic partnerships with AfDB and IFC are critical to strengthening the SME development pathway. Their expertise and resources help us unlock the potential of our SMEs,” Dr. Adam explained.

Kyle Kelhofer, Senior Country Manager for IFC, echoed these sentiments, stressing the importance of collaboration between government, academia, and financial institutions to develop innovative financing models that meet the needs of SMEs. He noted that the IFC has invested nearly $2 billion in Ghana’s economy over the past decade, with $150 million allocated directly to SMEs in the past year alone.

“By working closely with the government and other stakeholders, we are creating a robust ecosystem that provides SMEs with greater access to financing, particularly in key sectors such as agribusiness, fintech, healthcare, and manufacturing,” Kelhofer stated.

Institutional Reforms and Capacity Building

In line with the government’s long-term vision for SME development, Dr. Adam emphasized ongoing reforms at key institutions like the Ghana Enterprises Agency, MASLOC, and the National Entrepreneurship and Innovation Programme (NEIP). These reforms aim to provide more targeted and effective support to SMEs, offering services ranging from business advisory to financial aid.

Dr. Adam also stressed the importance of capacity building, particularly in addressing skills gaps among young entrepreneurs and startups. “A key aspect of our SME growth strategy is equipping entrepreneurs with the right skills and training to innovate, compete, and scale their businesses,” he noted, adding that the Ghana Jobs and Skills Project will help prepare the workforce for the demands of a modern economy.

Future Prospects for SMEs in Ghana

Looking forward, the future of SMEs in Ghana looks promising, especially with the expected passage of the Ghana Startup Bill. Dr. Adam indicated that the bill would provide a structured regulatory framework for startups, enabling them to attract investment and grow sustainably. “The Ghana Startup Bill will outline clear rights and responsibilities for SMEs, creating a conducive environment for their growth,” he said.

Kyle Kelhofer added that SMEs are crucial to Ghana’s economic transition towards a more diversified and sustainable economy. “With the right support and financing, these businesses will lead in creating jobs, fostering innovation, and boosting exports,” he remarked.

As the event concluded, stakeholders from the private sector, academia, and financial institutions underscored the importance of collective action in driving SME growth. The roundtable discussions reinforced the potential of Ghana’s SMEs to be a driving force for economic development, backed by strong policy support, strategic partnerships, and institutional reforms.