Finance Minister Dr. Mohammed Amin Adam has signed a strategic Memorandum of Understanding (MOU) with the ECOWAS Bank for Investment and Development (EBID), in a move aimed at empowering small businesses and driving economic growth.
The agreement – signed on May 10, 2024, at the end of a one-day working visit
to Lomé, the capital of Togo – unlocks a stream of US$200million in funding for
small and medium enterprises (SMEs) via concessional lending by Ghana Exim Bank
(GEXIM) and the Ghana Commercial Bank (GCB).
“This partnership with EBID marks a significant step toward driving sustainable
economic growth and fostering resilience within our SME sector. The commitment
of US$200million underscores our dedication to empowering SMEs, creating jobs
and catalysing innovation for long-term economic prosperity,” Dr. Amin Adam
said during the event.
While it is widely accepted that small and medium-sized enterprises (SMEs) are
the lifeblood of economies, serving as engines of innovation, economic growth
and job creation, they need help securing adequate financing.
By the end of 2021, there were approximately 332.99 million SMEs worldwide;
constituting over 90 percent of businesses and accounting for more than 50
percent of global employment.
Globally, SMEs contribute significantly to economic vitality. They represent 50
percent of the global Gross Domestic Product (GDP) and employ 60 percent of the
private sector workforce. The impact of SMEs extends to all corners of the
globe, fuelling economic growth and fostering resilience.
Domestically, there are approximately 850,000 SMEs – representing about 90
percent of businesses and contributing to more than 80 percent of employment.
The economic contribution of SMEs in the country is particularly notable,
constituting around 70 percent of the country’s GDP and 80 percent of private
sector employment. Women-led SMEs play a significant role in Ghana’s business
landscape, accounting for an estimated 43 percent of all SMEs.
Despite their undeniable impact, SMEs in Ghana face a significant credit gap
with an estimated US$2.4billion in unmet financing needs.
The concessional loans are expected to boost growth, create jobs and inject
foreign exchange into the local economy. They also align with the country’s
broader agenda of fostering entrepreneurship and achieving sustainable
development.
President and Chairman-Board of Directors, EBID, Dr. George Agyekum Donkor
stressed the importance of regional collaboration in driving economic
development.
“EBID is proud to partner with Ghana in this transformative initiative. This
injection of funds will not only bolster the SME landscape but also contribute
to overall economic growth and development in the region,” he explained.
Present at the ceremony were Chief Executive Officer-Ghana Exim Bank, Lawrence
Agyinsam and Executive Director-Wholesale and Investment Banking, GCB Bank
PLC., Samuel Aidoo.
They all agreed that the arrangement between Ghana and EBID sets a precedent
for impactful collaboration within the Economic Community of West African
States (ECOWAS), as partnership signals a collective commitment to fostering
private sector growth as a key driver of sustainable development and shared
prosperity across the region.
Source:
B&FT