Govt, Partners Allocate GH₵8.2 Billion to Develop SMEs

Government in collaboration with its international partners, has earmarked GH₵8.2 billion to fund the development of Small and Medium Enterprises (SMEs) across the country.
This investment marks the largest commitment to the sector in recent years.
Out of the total amount, the government of Ghana is contributing GH₵700 million, while the International Finance Corporation (IFC) and the African Development Bank Group are providing $400 million and $45 million, respectively.
The initiative will be coordinated by the Ministry of Finance and the Ministry of Trade and Industry, with the Ghana Enterprises Agency (GEA), Ghana EXIM Bank, and the Development Bank Ghana (DBG) serving as the principal implementing agencies.

Funding breakdown and objectives
President Nana Addo Dankwa Akufo-Addo, during the program launch in Accra, explained that GH₵700 million would be directed through the Ghana EXIM Bank to offer SMEs highly subsidized financial support for capital and operating expenditures, as well as capacity building for programme beneficiaries.
Additionally, a dedicated window for the One District One Factory (1D1F) initiative will be established to ensure optimal synergies within the structural project.
The GEA will receive GH₵230 million, targeting high-growth SMEs that employ 100 persons or more, with small-scale grants and loans of up to two years at highly subsidized rates.
DBG will contribute GH₵1.4 billion through its MSME Innovate and Grow Fund, providing loans of up to five years with tailored repayment conditions to support businesses.
DBG will also offer targeted training in financial management, regulatory compliance, digitalization, business plan development, and other areas.

Food innovation hub
As part of the program, Ghana EXIM Bank will establish a food innovation hub within the next three months at the University of Ghana campus.
This facility will support Micro, Small, and Medium Scale Enterprises (MSMEs) in the food industry with testing and scaling up production.
It will include processing equipment, warehousing space, a testing lab, and a suite for SMEs to interact with regulatory authorities.

Govt’s vision and commitment
President Akufo-Addo emphasized the critical role SMEs play in Ghana’s economy, contributing to job creation, innovation, and economic diversification.
“SMEs are the backbone of Ghana’s economy, contributing significantly to job creation, innovation, and economic diversification,” he stated.
The President highlighted the program’s mission to empower SMEs to thrive and drive the nation’s economic prosperity.
Minister for Finance, Dr. Mohammed Amin Adam, underscored the pivotal role of SMEs in Ghana’s economic transformation agenda and the government’s commitment to creating an enabling environment for SMEs.
“Supporting SMEs is crucial to achieving our growth and development ambitions. We must be intentional about providing access to financial resources, expertise, and capacity-building programs that empower them to drive innovation, create jobs, and stimulate economic growth,” he stated.

Strategic focus on SMEs
Trade and Industry Minister K.T. Hammond reiterated the importance of the SME sector in the country’s economic and industrial transformation.
He noted that SMEs represent approximately 81% of the country’s enterprises, with significant contributions from the informal sector.
“The SME sector in the country has about 1.7 million enterprises, representing approximately 81% classified as micro-enterprises, another 15% as small enterprises, and about 4% as medium enterprises,” he highlighted.

International support and future prospects
Solomon Quaynor, Vice-President for Private Sector, Infrastructure & Industrialization at the African Development Bank, emphasized the critical role of SMEs in Ghana and Africa. He pointed out that SMEs constitute about 90% of all businesses on the continent and provide over 50% of employment, despite facing substantial challenges, particularly in financing.
Quaynor stressed the estimated $331 billion financing gap for MSMEs across Africa and reiterated the African Development Bank’s commitment to addressing these challenges through financial and non-financial support to enhance SME capacity and sustainability.
He also emphasized the importance of supporting youth, particularly in tech-enabled sectors, viewing them as an “investable asset class” rather than mere recipients of financial handouts.
The collaborative efforts of the government and its partners aim to harness the potential of Ghanaian SMEs to build a prosperous, dynamic, and competitive economy, leaving a legacy of empowerment, innovation, and prosperity for future generations.