According to Ghana’s Finance Minister, Dr. Mohammed Amin Adam, the strong economic growth of 5.8% during the first half of the year—the highest in the past five years—was supported by the strong entrepreneurial resilience of the Small and Medium Enterprises (SME) sector and the government’s economic reforms.
“I want to emphasize that SMEs are the backbone of our economy, contributing 70 percent to our GDP and constituting 92 percent of businesses”.
Their entrepreneurial tenacity is the driving force behind the remarkable recovery of economic growth, as the GSS data demonstrates.
These were said by Dr. Amin Adam at the University of Ghana’s 2nd Quarterly Economic Roundtable (QER) on the topic “Driving Economic Growth Through Small and Medium Enterprises (SMES).”
He went on to say that the economy was back on track, which shows that government programs to help the private sector are working.
“However, we know that future stellar growth is not guaranteed. To manifest our growth prospects, we need to mitigate key risks. Managing these risks require us to reconsider policies and reinforce strong partnerships with stakeholders, especially with the SME sector.”
He stated that the SMEs roundtable was, as a result, a step in the right direction because the discussions will focus on addressing and mitigating SMEs’ challenges in order to maximize their benefits to job creation, income generation, and economic expansion.
He stated that there is nothing that can’t be accomplished with purposeful partnerships and focused leadership, as Ghana’s remarkable recovery story demonstrates.
“The strides we have made in fiscal consolidation, debt restructuring, and economic reforms are a testament to our collective will to succeed.” he added.
Dr Amin Adam noticed that government is now carrying out various projects in that sector.
These include the 8.2 billion SME-Go program, which helps small and medium-sized businesses take advantage of regional and global opportunities; the World Bank’s implementation of the US$200 million Ghana Jobs and Skills Project and the US$200 million Ghana Economic Transformation Project.
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In addition, in order to provide SMEs with prompt and comprehensive assistance, the government has implemented measures to strengthen the Ghana Enterprises Agency, Ghana Commodity Exchange, MASLOC, National Entrepreneurship and Innovation Programmes, and Venture Capital Trust Fund.
“To the SMEs that continue to strive, I say to you: we are here in your name. You are not alone or lonely. You are priority of the Ghanaian society and this Government. We will not fail you. The outcome of this Roundtable is expected to benefit your current operations and future growth prospects.”
Prof. Nana Aba Appiah Amfo, Vice Chancellor of the University of Ghana, also spoke. She stated that the Quarterly Economic Roundtable (QER) was in line with the university’s vision and mission, stating,
“Through the Quarterly Economic Roundtable, University of Ghana strengthens its position not only as a knowledge generation hub but also to influence public policy, provide informed insights, foster innovation, and promote collaboration with key stakeholders for national development.”
She also noted that the focus on small and medium-sized enterprises (SMEs) was very important because it will provide employment opportunities for the thousands of students who graduate from universities each year
“As Vice Chancellor, who is involved in the training of young people, this is an area of interest for me, as it is obvious that the formal public and private sectors cannot absorb the tens of thousands students that we graduate every year, and who are out there in search of jobs. SMEs should be a viable option for consideration for many of them”.
Mr. Kyle Kelhofer, Senior Country Manager, International Finance Corporation (IFC) welcomed the initiative noting that the collaboration between academia, government and financial institutions was essential for driving innovation and creating sustainable solutions for SME financing.
“Academia provides valuable research, data, and insights that can inform financial products and services tailored to the needs of SMEs. By working together, we can develop innovative financing models, leverage technology, and create an enabling environment for SMEs to thrive.”
The Quarterly Economic Roundtable is organized by the Ministry of Finance and the Institute of Statistical, Social and Economic Research of the University of Ghana and was supported by the International Finance Corporation of the World Bank.
The main objective of the second roundtable was to provide critical analysis and discussions around policy strategies that can catalyze innovation and promote sustainable growth in SMEs.
Credit: Finance Ministry, Ghana
