According to Kosi Yankey-Ayeh, CEO of the Ghana Enterprises Agency (GEA), the consistent liquidity support provided to small and medium-sized businesses under phase two of the COVID-19 Response Grant will eventually grow into “building giants” that will be able to compete on a global scale and increase the nation’s level of independence.
288 recipients have received GH28 million from GEA as of yet as part of COVID-19 Response Grant phase two.
The High Growth Technical Assistance Programme, which will exclusively support SMEs that wish to consistently try to accelerate their growth, will be introduced, according to the CEO, in the second week of the following month.
Speaking at the grant contract signing ceremony of the sectoral expansion of the Covid-19 Response Grant Programme on Thursday, she told Business24 in an interview that “I think today’s event is very significant in terms of the numbers, this is the largest number of the three and in terms of the, amount of money we giving, and also in terms of the women -men ratio, so as much as possible we trying to improve the diversity of the funding we giving and also to support more diverse businesses, we are seeing a different uptake and a different types of businesses that are coming up based on the gender segregation and so today is very meaningful especially at a time now everyone is going through economic challenges, Ghana has not been spared, it is important for the SMEs to know they have hope in an institution such as GEA.
It is our goal and our focus to ensure that we building giants and we are strengthening businesses, and that is the focus and direction of the work that we do.”
Phase one success
Mrs. Kosi Yankey-Ayeh, had said the new round of the stimulus package was based on the success of the phase one and two which reached 288 SMEs with GH¢28million
She explained that the grant was part of the government’s initiative to promote private investments, sustain and create jobs, ensure business innovation, competitiveness and growth to support the economy.
The project was to support the government agenda not only to promote private investments but also to encourage growth in non-resource-based sectors.
On its impact, the CEO stated that the fund was expected to culminate into job creation and sustainability, business innovation, competitiveness and growth.
She said it will help SMEs transition into the next stage of growth, thereby improving their ability to increase sales and incomes, and exports.
A Deputy Trade and Industry Minister, Nana Ama Dokua Asiamah Adjei indicated that it was government’s hope that majority of the beneficiaries would disburse the funds as they promised in their application.
“This is to ensure that their business will grow, cushion them a little bit, looking at how COVID-19 hit, smes were hardest hit from extra cost in production because of covid protocols and we want them to come out of the situation they went in, it is good government is supporting them.
Grant details
The grant is being implemented under the World Bank-funded Ghana Economic Transformation Project (GETP).
It is targeting small businesses with employees between six and 100 and those with annual turnover between GH¢180,000 and GH¢21.6 million.
To be able to access the fund, SMEs also need to have business operating certificates and submit financial statements or income statements between 2019 and 2021.
The fund must be used to purchase machinery and equipment, or technology, equipment installation and repair costs, working capital expenses including purchase of raw materials and marketing costs and payment of rent.
Special attention will also be given to women-owned enterprises and enterprises using green technologies.
