BoG Governor Calls on Banks to Rethink SME Financing for Global Competitiveness
The Governor of the Bank of Ghana, Dr Johnson Asiama, has called on Ghanaian banks to rethink their approach to financing small and medium-sized enterprises (SMEs) if the country is to fully integrate its businesses into sustainable global value chains.
Speaking at a workshop themed Supporting SMEs to Sustainable Global Value Chains, organised by the Ghana Association of Banks (GAB) in collaboration with Afreximbank, the Trade and Development Bank (TDB), and the African Development Bank (AfDB), Dr Asiama stressed that banks must place themselves at the centre of this transformation.
“Finance remains the oxygen of enterprise. If we want our SMEs to scale and integrate into sustainable value chains, then our banks must be at the centre of this effort,” he told participants.
Moving Beyond Collateral-Based Lending
The Governor highlighted the need for banks to adopt more innovative lending models rather than relying solely on collateral-based financing. Many SMEs, he explained, lack fixed assets but could thrive with access to tools like cash-flow lending, purchase-order finance, and supply-chain finance.
“In Asia and Latin America, SMEs leverage anchor buyers’ creditworthiness to access lower-cost working capital. Ghanaian banks can do the same – especially for sectors like cocoa, agro-processing, and manufacturing,” Dr Asiama noted.
Leveraging Risk-Sharing and Development Finance
He pointed to risk-sharing tools as critical enablers for SME financing. Using Rwanda as an example, he said partial credit guarantees unlocked SME lending and spurred job creation. Ghana already has mechanisms such as GIRSAL, which, if strengthened with more transparency and governance, could build confidence among lenders.
Dr Asiama also urged banks to partner more closely with development finance institutions like Afreximbank and the AfDB. He cited Bangladesh’s garment sector, which scaled rapidly through blended finance and trade lines. Ghana, he said, can learn from this model, particularly in sectors such as light manufacturing and pharmaceuticals.
Harnessing Digital Solutions
On technology, the Governor stressed the need for banks to embrace digital tools such as e-invoicing, digital payments, and electronic trade documentation. These, he said, reduce friction, enhance trust, and enable banks to monitor SME performance in real time.
“Fintech partnerships are already making this possible across Africa and beyond. Ghana must not be left behind,” he said.
Combining Capital with Knowledge
Dr Asiama further advised banks to go beyond providing capital by also offering knowledge and advisory services to SMEs. Many businesses, he explained, face challenges meeting export standards, documentation requirements, or sustainability obligations. Banks can add value by guiding SMEs through certification, traceability, and carbon reporting.
“In Kenya, commercial banks already support horticulture exporters in this way. Ghanaian banks must follow suit,” he urged.
The Governor concluded by reiterating that the growth of SMEs is central to Ghana’s economic transformation and integration into global trade. Banks, he said, have a unique opportunity to shape this future by innovating their financing models and aligning with sustainable value chains.
