To address the financing gap for micro, small, and medium-sized enterprises (MSMEs), 15 Ghanaian financial service providers have teamed up with the Support to Private and Financial Sector (PFS) Programme to create innovative financial products.
Funded by the German Cooperation through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, this initiative is focused on designing financial solutions specifically tailored to the needs of MSMEs.
A kickoff meeting in Accra, attended by insurance and pension regulators, partner financial service providers, and consultants, offered a platform for discussing strategies to enhance MSMEs’ access to financial services through these new product developments.
The new financial products will encompass loans, savings, investment, and bundled offerings. The primary focus of this initiative is MSMEs, with special emphasis on businesses owned or operated by women, youth, and persons with disabilities (PWDs).
Speaking at the kick-off meeting, Angela Armah from GIZ said, “GIZ is happy to support this because MSMEs are considered as efficient and prolific job creators, the seeds of big businesses and the fuel of national economic engines. We are here to discuss together how we bring need-based financial products to the doorstep of MSMEs.”
Despite employing around 85% of Ghana’s workforce, MSMEs encounter major obstacles when it comes to accessing financing.
Additionally, many MSMEs lack a thorough understanding of the various financial products available and their associated requirements. This initiative is designed to create customized financial solutions to improve MSMEs’ access to funding, thereby helping them expand and generate more job opportunities.
To achieve this objective, the GIZ team is excited to collaborate with fifteen financial service providers and fifteen trade associations to develop financial products tailored to the needs of MSMEs.
This initiative highlights GIZ’s dedication to promoting economic growth and supporting the vital sector of Ghana’s economy—its MSMEs.