Government’s GHC8.2 billion initiative aims to transform SMEs into economic powerhouses

Amid growing concerns over Ghana‘s economic vulnerability to global market fluctuations, the government is rethinking its growth strategy.

At the forefront of this shift is the SME Growth and Opportunity Programme (SME GO), which aims to strengthen the country’s economic foundation by empowering small and medium-sized enterprises (SMEs).

Speaking at a SME GO summit in Wa in the Upper West Region, Abudu Abdu-Ganiyu, technical adviser to the finance minister, articulated the need for a new approach.

“Ghana’s growth model must evolve beyond relying heavily on foreign direct investment and raw material support, which can be volatile and expose us to external shocks. Instead, we must harness the potential of our homegrown SMEs to build a prosperous, dynamic, and competitive economy,” he started.

For decades, Ghana’s economic growth has been closely tied to foreign direct investment and the import of raw materials that, while beneficial, have left the economy vulnerable to global market fluctuations.

The SME GO Programme, with a substantial Gh¢ 8.2 billion investments, marks a deliberate move to strengthen the domestic economic foundation by focusing on small and medium-sized enterprises (SMEs).

The initiative, which will be implemented by Ghana Enterprise Agency (GEA), Ghana Exim Bank, and Development Bank Ghana/International Finance Corporation, is designed not just to provide financial and technical support to SMEs but to redefine the growth narrative by emphasising local innovation, job creation, and economic diversification.

Speaking on behalf of the Upper West Regional Minister, Joseph Abugri indicated that “SMEs are the backbone of our economy, accounting for over 70% of GDP and contributing significantly to employment creation.”

He, however, acknowledged that these enterprises often struggle with significant obstacles that hinder their potential.

Joseph Abugri highlighted the importance of peace, particularly in the context of the upcoming December 2024 elections, saying, “this is an election year, and the stakes are already high. Some may seek to create confusion and disturb the peace of the region and the nation. We at the Regional Coordinating Council take this issue seriously.”

He urged everyone to contribute to efforts of peace-building to ensure social, political, and economic stability while emphasising that without peace, the investments in SMEs and the region’s development would be in vain, saying, “If there is chaos, if there is anarchy, this investment is going to get wasted.”

He therefore called on SMEs to implement sustainable mechanisms in their operations to ensure long-term success and job creation, as he expressed optimism about unlocking the potential of SMEs to drive economic prosperity in the region and across Ghana.

Reporting by Alhassan Tajudeen in the Upper West region

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