The government has indicated it intends to leverage Financial Technology (Fintech) to provide capital to small and medium-sized enterprises.
In Ghana, SMEs constitute 92% of manufacturing, 70% of growth, and provide 80% of jobs. Yet still, they usually face challenges accessing capital, Finance Minister Mohammed Amin Adam said at the inaugural 3isummit which opened in Accra on Monday, May 13.
“Our focus going forward is, therefore, to generate growth within our borders by increasing access to capital. This cannot be achieved without a strong fintech infrastructure; an important requirement to address the efficiency of delivering capital to SMEs and reducing the risks of recovery of funds by financial institutions,” Amin Adam said.
The Ministry of Finance also says it’s finalizing an SME financing strategy which should set the grounds for direct lending to SMEs, reduce the cost of borrowing, and support skills and innovation through fintechs.
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Last week for instance Finance Minister Amin Adam signed a $200 million loan with the ECOWAS Bank for Investment and Development to fund SME growth in Ghana.
Pleased to announce that in Lomé on Friday, 10 May, 2024, I signed an MOU with @BIDC_EBID to arrange for $200m to boost SME growth in Ghana, through lending by @GCBBankPLC & @geximgh. Truly excited about the potential transformative impact on our entrepreneurs and the economy! pic.twitter.com/AurrEnRK8V
— Office of the Finance Minister-Ghana (@oofmghana) May 13, 2024
“In my capacity as Ghana’s Finance Minister, I am steadfastly committed to harnessing the potential of our nation’s fintech landscape to drive sustained economic growth and progress.”
