Gov’t To Create Viable SME Ecosystem For Businesses With High-Growth Potentials – Amin Adam
The Minister for Finance, Hon. Dr. Mohammed Amin Adam has said, government has set its sights on creating a viable SME ecosystem that ensures businesses with high-growth potential are given the technical capacity and financing support to scale and rapidly create impact.
He said: We envision SMEs being the cornerstone of our economic renaissance and will look to realize this ambition with the launch of our SME Growth and Opportunity Programme next Tuesday (16th of July).”
The Banks, he noted, will be absolutely crucial to this initiative and that the Development Bank Ghana, as part of the programme, is looking to channel close to GHS 1.4 billion through the financial sector for onward lending to viable SMEs.
He was speaking at a Stakeholders engagement towards 2024 Mid-Year Budget where he averred that the meeting is a testament to government commitment to transparency, inclusivity, and shared responsibility in shaping the economic policies.
The meeting discussed key strategies and policies that will impact the economy.
The meeting which was held to address current economic issues and explore innovative solutions sought insights and feedback from participants.
Development partners such as the IFC are also looking to structure a $400 million package to complement this financial support and ensure we can close the financing gap for our SMEs over the medium term. Around that vision, we will continue to engage with PFIs to ensure you remain an important anchor of our economic progress. As it stands, the Bank of Ghana’s latest MPC report demonstrates that there have been steady improvements to most financial soundness and profitability ratios so far this year,” he said.
According to him, total assets increased by 28.8 percent to GH¢306.8 billion at the end of April 2024, while Banks also reported higher profits for the first four months of 2024, relative to the same comparative period in 2023.
The financial data from the recent Corporate Income Tax (CIT) of banks from GRA also reflects the fact that generally, the taxes paid by banks is positive and reflects well on their financial health and compliance and suggests a healthy and compliant banking sector that contributes positively to the economy through its tax payments.
However, he said, a few banks are still struggling, but hope things will improve as the general economy rebounds.
The Minister also pointed out that, government’s resilience in its efforts at restoring the economy are paying off, with growth proving more resilient than initially expected.
Although he said, the Ghanaian economy has faced challenges and suffered unforeseen shocks like many other economies, the economy is at a pivotal juncture, and it is imperative that we work together to ensure sustainable growth and prosperity for all.
According to the minister, “We are living in a time of rapid change and uncertainty, but also of great potential. By leveraging our collective expertise and resources, we can create a resilient and dynamic economy that benefits every citizen. This requires us to be bold in our vision, pragmatic in our approach, and united in our efforts.”
By PROSPER AGBENYEGA
