Ghana is poised to receive a $45 million grant from the African Development Bank (AfDB) next year to support a project focused on the growth and digitalization of Small and Medium-sized Enterprises (SMEs).This funding is part of the AfDB’s strategy to enhance private sector development, emphasizing a unified approach to advancing the Bank’s agenda, with a strong emphasis on SME growth and digital transformation.

0

“Our initiatives, such as providing technical assistance, enhancing digital financial inclusion, and supporting specialised agro-industrial zones are designed to address the unique challenges faced by SMEs in Africa,” said Mr.

1

Solomon Quaynor, the Vice President of the African Development Bank, responsible for private sector, infrastructure and industrialization at the SME growth and Opportunity Summit organised by the Ministry of Finance and the Ministry of Trade and Industry.

2

The event held on the theme “Breaking Barriers to SME, growth” brought together selected participants from the private sector, academia, business regulatory and compliance institutions, media, industry, multilateral and bilateral partners as well as financial service providers.

3

It includes initiatives spanning finance, governance, and industrialization to enhance SME access to capital and markets, with a focus on value chain creation, productivity improvements, and market facilitation.At the event, the President also unveiled the GH₵8.2 billion SME GO program, aimed at strengthening support for SMEs nationwide.

4

Kyle Kelhofer, Senior Country Manager at the International Finance Corporation (IFC), revealed that the IFC has contributed over $400 million to Ghana, with more than $120 million allocated to the financial sector to support lending, stimulate growth, and aid SMEs.

5

He noted Ghana’s strong track record in SME development but suggested that the government could accelerate progress by providing SMEs with a more accessible and transparent business environment, enabling them to formalize and access the benefits available to established companies.“Supporting the SMEs does not just mean we are supporting small businesses, but rather we’re investing in the future large local corporates for Ghana.

6

It is today’s SMEs that are tomorrow’s large-scale job creators, economic transformation, and leadership.Dr Humphrey Kwesi Ayim-Darke, President of the Association of Ghana Industries (AGI), said breaking barriers for SME growth was a shared responsibility that required the collective effort of entrepreneurs, policymakers, financial institutions and other stakeholders.

7

He emphasized the importance of uniting efforts and embracing innovative strategies to advance the sector, enabling it to effectively navigate the complexities of contemporary markets and global competition.In the short term, he encouraged the government to partner with the private sector to reevaluate tax policies that impede SME growth.

8

“We must strive to simplify the tax regulatory framework, ensuring it is conducive to the unique needs of SMEs. We therefore pledge our commitment to coordinate with the Government to harness the full benefits of this programme,” he said.

9