Finance Minister, Dr. Mohammed Amin Adam, has indicated that the impressive 5.8% economic growth recorded in the first half of the year, the highest in five years, was largely fueled by the resilience and innovation of Small and Medium Enterprises (SMEs) and supported by the government’s economic reform initiatives.
“I want to emphasize that SMEs are the backbone of our economy, contributing 70 percent to our GDP and constituting 92 percent of businesses”.
Citing data from the Ghana Statistical Service, Dr. Mohammed Amin Adam emphasized that the entrepreneurial strength of businesses has been a key factor in the impressive rebound of economic growth.
He made these remarks during the 2nd Quarterly Economic Roundtable (QER) held at the University of Ghana, under the theme, “Driving Economic Growth Through Small and Medium Enterprises (SMES)”.
He noted further that the economy was back on track, an indication that government policies to support the private sector are yielding positive results.
“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 said the round table on SMEs was therefore a step in the right direction as the discussions will focus on how to address challenges faced by SMEs and how to mitigate them to optimize the gains from SME for job creation, income generation and economic expansion.
“Ladies and Gentlemen, as we engage today, it is my sincere expectation that we are guided by our unity of purpose on SMEs. As demonstrated in our remarkable recovery story, there is nothing that purposeful partnerships and focused leadership cannot achieve. The strides we have made in fiscal consolidation, debt restructuring, and economic reforms are a testament to our collective will to succeed.”
Dr Amin Adam noted that government is already implementing a number of programmes in that sector. These include the 8.2 billion SME-Go programme to support SMEs to leverage regional and global opportunities; the US$200 million Ghana Jobs and Skills Project and the US$200 million Ghana Economic Transformation Project being implemented with the World Bank.
In addition to the above, government has put in place measures to strengthen Ghana Enterprises Agency, Ghana Commodity Exchange, MASLOC, National Entrepreneurship and Innovation Programmes and Venture Capital Trust Fund to provide timely and comprehensive support to SMEs.
“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.”
The Vice Chancellor of the University of Ghana, Prof. Nana Aba Appiah Amfo said the QER was in line with the University’s vision and mission saying “Through the Quarterly Economic Roundtable, University of Ghana strengthens it 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”
The focus on SMEs she noted was also very critical as it will provide job opportunities for the thousands of students who churn out of the universities annually.
“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