Small and medium-sized enterprises (SME) in Ghana remain the lifeblood of the economy, yet they continue to face daunting challenges that prevent them from reaching their full potential.
From the lack of affordable finance to currency volatility, export compliance hurdles, and fragmented logistics, the structural barriers are clear.
At a recent policy forum in Accra, industry leaders and regulators underscored the urgent need for deliberate strategies to help SMEs scale, formalize, and plug into both regional and global value chains.
SMEs and the structural hurdles
Despite their dominance in job creation and innovation, most Ghanaian SMEs operate outside the formal economy.
Many struggle to access affordable loans, while meeting international export standards remains a steep climb.
Currency swings further undermine competitiveness, especially for enterprises importing machinery or exporting goods. Logistics challenges—from transport costs to fragmented supply chains—add another layer of difficulty.
Experts argue that local and regional value chains could provide a more practical pathway to growth.
Supermarket supply networks, telecommunications, pharmaceuticals, and logistics firms already create structured relationships with SMEs, offering volume demand and opportunities to scale incrementally.
On a regional scale, the African Continental Free Trade Area (AfCFTA) offers a platform for Ghanaian SMEs in agro-processing, textiles, light manufacturing, and digital services to expand across borders within a more flexible regulatory environment.
The sustainability shift
Yet even in domestic and regional markets, standards are rising. Buyers increasingly demand evidence of sustainable practices, from emissions tracking to ethical sourcing.
For Ghanaian SMEs, this means that productivity and quality alone are no longer enough; compliance with environmental and ethical benchmarks is fast becoming the gateway to new markets.
This shift presents not just a regulatory challenge but also a financing one — requiring banks to innovate.
The role of banks
Finance remains the oxygen of enterprise, but most Ghanaian banks still operate on collateral-based lending models that shut out SMEs.
Stakeholders called for fresh approaches including cash-flow lending, purchase-order finance, and supply-chain financing — systems already proven effective in Asia and Latin America.
By leveraging the creditworthiness of anchor buyers, banks can reduce lending risks and extend capital to smaller firms.
Risk-sharing tools also hold promise. Rwanda’s use of partial credit guarantees has spurred SME lending and job creation, while in Ghana, platforms like GIRSAL are seen as underutilized. Partnerships with development finance institutions such as Afreximbank and the African Development Bank were also recommended, with examples drawn from Bangladesh’s garment sector.
Digitalization is another key enabler. E-invoicing, electronic trade documentation, and digital payments allow banks to monitor SME performance in real time while reducing transaction friction. Fintech partnerships are already proving transformative in other African markets.
Finally, banks were urged to bundle finance with advisory support, helping SMEs navigate export certification, traceability requirements, and sustainability standards.
BoG’s support measures
The Bank of Ghana (BoG) outlined steps it is taking to strengthen the financial ecosystem for SMEs.
These include recapitalizing banks, enhancing supervision, and improving risk management to build a resilient financial sector capable of absorbing shocks.
The central bank is also pushing innovation through regulatory frameworks for digital finance, mobile money, interoperable payments, and soon, open banking.
These digital rails, BoG noted, are crucial for SMEs to transact formally, build financial histories, and access credit.
Credit infrastructure has also improved, with functional credit bureaus, a collateral registry, and reforms to curb non-performing loans.
Through the Financial Stability Council, BoG collaborates with government and regulators to safeguard systemic stability, creating the conditions for banks to take calculated risks with SME lending.
In line with global trends, BoG is also encouraging banks to embrace green and transition finance.
Tailored products for energy-efficient technologies, international certification, and carbon reporting will help SMEs integrate into sustainable value chains and secure long-term competitiveness.
Forex market reforms
No conversation on SMEs is complete without discussing foreign exchange stability.
For importers and exporters, FX volatility can mean the difference between survival and collapse.
BoG has therefore introduced reforms to deepen interbank activity, curb speculation, and make FX access more predictable. New guidelines on large cash transactions and tighter anti-money laundering rules aim to channel flows through formal systems. More transparent FX auctions are expected to give businesses greater certainty in planning.
The reforms are also tied to a dedollarisation agenda, promoting cedi-denominated transactions and trade products to reduce currency mismatches.
While the cedi saw modest depreciation recently, BoG attributed this to seasonal trade patterns and said the long-term outlook remains stable, supported by fiscal discipline and improved reserves.
The way forward
Ultimately, Ghana’s ability to transform its SMEs into global players rests on deliberate policy, innovative banking practices, and targeted investments in infrastructure.
Stakeholders agreed that SMEs must embrace digitization, formalization, and global standards if they are to compete.
At the same time, banks must reimagine lending models and regulators must continue building a stable, innovation-friendly financial system.
“SMEs are not risky outliers,” one speaker emphasised.
“They are the future growth drivers of our economy. If we succeed in integrating them into global value chains, we will not only transform enterprises, but transform lives, create decent jobs, and build lasting prosperity.”
