Ghana Set to Invest GH¢1.4bn into Small and Medium Enterprises

By Richard Adorsu-

Photo Credit: Deposit photos

NEW AFRICA BUSINESS NEWS (NABN) Accra GHANA- The Government through the Development Bank Ghana (DBG) is set to inject nearly GH₵1.4 billion into the financial sector to be loaned to viable Small and Medium Enterprises (SMEs).

Additionally, the International Finance Corporation (IFC) is structuring a $400 million package to complement this financial support, addressing the financing gap for SMEs over the medium term.

This initiative is part of a broader programme aimed at bolstering the growth and development of SMEs in the country.

Finance Minister Dr. Mohammed Amin Adam announced these plans during a stakeholder engagement focused on the upcoming mid-year budget review.

He emphasized the government’s commitment to engaging with Participating Financial Institutions (PFIs) to ensure they remain key drivers of economic progress.

The meeting addressed key strategies and policies aimed at tackling current economic issues and exploring innovative solutions.

Dr. Adam encouraged open and constructive dialogue, underscoring the value of stakeholders’ insights and feedback.

The government aims to create a robust SME ecosystem, providing businesses with high-growth potential the technical capacity and financial support needed to scale and make a significant impact.

Dr. Adam highlighted the Bank of Ghana’s latest Monetary Policy Committee (MPC) report, which indicates steady improvements in financial soundness and profitability ratios this year.

According to the report, total assets increased by 28.8% to GH₵306.8 billion by the end of April 2024.

Banks also reported higher profits for the first four months of 2024 compared to the same period in 2023.

The recent Corporate Income Tax (CIT) data from the Ghana Revenue Authority (GRA) reflects a generally healthy and compliant banking sector, contributing positively to the economy through tax payments.

Although a few banks are still struggling, the Finance Minister expressed optimism that their situations will improve as the overall economy rebounds.

“Together, we can build a stronger, more inclusive and prosperous future,” Dr. Adam concluded.

For New Africa Business News Richard Adorsu Reports, Africa Correspondent