For decades, donor governments have struggled to translate development intent into tangible results in Ghana. Billions have been committed, feasibility studies commissioned, and high-level missions deployed—yet many interventions stall before execution.
A recurring explanation is dependence on government-to-government (G2G) channels: a model that assumes state systems are always ready, responsive, and aligned with project timelines.
However, Ghana’s evolving economic landscape tells a different story: private sector-driven Small and Medium Enterprises (SMEs)—especially those with strong governance structures—are emerging as credible vehicles for development delivery.
This article argues that donor governments must rethink conventional models and create pathways that allow board-led Ghanaian SMEs to execute projects—complementing rather than replacing government partnerships.
The Pitfalls of Government-to-Government Dependency
The intention behind G2G arrangements is noble: align development spending with national priorities and institutional legitimacy. Yet in practice, several systemic challenges limit its effectiveness:
- Bureaucratic delays and lengthy procurement cycles
- Political transitions that stall or reverse agreements
- Weak project ownership due to competing interests
- Limited accountability and performance follow-through
As a result, donor commitments often dissipate into prolonged processes rather than impactful delivery.
The Untapped Potential of Ghana’s Private Sector
Ghana’s economy is driven by SMEs—over 85% of enterprises fall into this category, and they employ the majority of working Ghanaians. Yet these enterprises are rarely considered by donors as strategic project implementation partners.
Recent reforms in corporate governance—through bodies such as the Chartered Institute of Restructuring and Insolvency Practitioners, Ghana (CIRIP-Ghana), IoD-Ghana, and private governance consultancies—have strengthened SME leadership capacity. Increasingly, SMEs now:
- Have functioning Boards with independent oversight
- Implement risk management practices
- Maintain financial discipline
- Demonstrate operational agility
These are the class of enterprises that donor governments can confidently invest in.
In this reconfigured development landscape, the Association of Ghana Industries (AGI) emerges as a pivotal institutional actor capable of bridging donor intent and SME execution capability. As the largest organized private sector umbrella body, AGI possesses the convening power to identify, screen and certify credible member enterprises with governance structures robust enough to undertake donor-funded assignments in collaboration with CIRIP Ghana and IoD-Ghana.
Its sectoral chambers, policy advocacy platforms, and longstanding networks with public regulators position it to function as an intermediary assurance mechanism—signalling SME credibility, coordinating capacity-building, and facilitating consortium formation for larger project delivery. Moreover, AGI can help shift development cooperation narratives by championing domestic industrial participation, negotiating procurement frameworks that privilege compliant SMEs, and demonstrating to donors that a structured, board-led private sector exists beyond political institutions. In doing so, AGI becomes both a validator of capable SMEs and a strategic broker in the transition from state-dependent delivery to a competitive, governance-driven private execution ecosystem.
Why SMEs With Strong Boards Are Ideal Execution Partners
- Governance Equals Accountability
Board-governed SMEs operate with structured oversight. Performance indicators, reporting systems, internal audits, and ethical standards align with donor expectations more than informal political structures often do.
- Agility and Speed
Unlike ministries with competing mandates, SMEs can mobilize quickly, deliver faster, and pivot when early challenges emerge.
- Built-in Sustainability
Projects managed by private sector entities have market incentives to remain financially viable beyond donor lifecycles—ensuring continuity.
- Proximity to Communities
Many SMEs are embedded within the sectors donor governments target:
- Renewable energy
- Construction
- Agribusiness
- Health logistics
- Water and sanitation
Their local knowledge improves adoption and outcomes.
A New Partnership Model: State-Aligned, Private-Driven
This article does not suggest bypassing government, but rebalancing engagement:
- The State sets national priorities and regulatory direction
- SMEs execute projects under governance and performance contracts
- Donor governments fund, monitor, and evaluate with transparency
Such a tripartite model mitigates political capture while accelerating delivery.
Lessons From Countries That Switched
Countries like Rwanda, (Water Projects) Kenya, (Solar-powered mini-grids) and Mauritius (SME master plan) have increasingly adopted public-private co-delivery models—with SMEs acting as implementers under stringent governance conditions.
The results:
- Faster road construction
- Scalable digital services
- Community-based health deployments
- Renewable energy installations
- Faster Rural water supply
Ghana has the institutional maturity to replicate these successes, especially with ongoing reforms in corporate governance and insolvency regulation that force discipline, transparency, and accountability.
What Donor Governments Must Do
- Create SME-friendly project finance windows
with eligibility based on governance maturity rather than political linkage.
- Make Board composition and performance reviews a funding criterion.
- Partner with Ghanaian regulatory bodies
such as CIRIP-Ghana and IoD-Ghana in collaboration with AGI to certify governance readiness.
- Pilot high-impact community projects with SME consortiums.
- Establish transparent monitoring systems independent of political circles.
Conclusion: Financing Development Through Competence, Not Proximity to Power
Ghana’s development trajectory demands innovation—not just in technology, but in how projects are financed and executed. Donor governments must look beyond traditional state-centric channels and recognise the institutional credibility that well-governed Ghanaian SMEs now possess.
If development is to be fast, inclusive, and accountable, the future belongs to Board-led private sector execution, not bureaucracy-anchored inertia.
It is time for donors to believe in Ghana’s SMEs—not just as beneficiaries, but as delivery partners capable of transforming intent into impact.
References
African Corporate Governance Network. (2020). Governance and Development Effectiveness in Africa. ACGN.
Ghana Statistical Service (2023). Annual Report on SMEs and Employment Contribution in Ghana.
Ghana Institute of Directors. (2022). Public Governance and SME Transformation Report. Institute of Directors Ghana.
International Finance Corporation/World Bank. (2015). Corporate Governance Manual for SMEs in Emerging Markets. IFC.
Ministry of Finance, Ghana. (2022). National PPP policy update and implementation report. Government of Ghana.
Organisation for Economic Co-operation and Development. (2019). Strengthening SMEs and entrepreneurship for productivity and inclusive growth. OECD Publishing.
Organisation for Economic Co-operation and Development. (2021). Development co-operation report: Shaping a just digital transformation. OECD Publishing.
By DIVINE AKOTIA
About the Author:
The writer is a Certified Governance Auditor. He was the Ag. COO and the Corporate Governance Lead at the Chartered Institute of Restructuring and Insolvency Practitioners, Ghana (CIRIP-Ghana) He is currently the National President of International Human Rights Protection Service-Ghana (IHRPS-Ghana)
