Gone are the days when banks could rely solely on collateral-based lending to support small and medium-sized enterprises (SMEs). Today, Dr. Johnson P. Asiama, Governor of the Bank of Ghana, says, helping SMEs grow, compete, and integrate into regional and global value chains requires a combination of innovation, guidance, and technology. Without these, many promising businesses risk stagnating or missing opportunities in an increasingly competitive market.
“Many SMEs lack fixed assets, but models like cash-flow lending, purchase-order finance, and supply-chain finance have proven effective elsewhere,” Dr. Asiama said, highlighting how banks can provide working capital even when SMEs do not have traditional collateral.
He added that financing alone is not enough; banks must also guide businesses on sustainability, certification, and traceability to ensure they can meet the higher standards of both regional and global buyers.
To achieve this, Dr. Asiama urged banks to make better use of risk-sharing tools, such as partial credit guarantees, which can reduce lending risk and encourage investment in SMEs. He also emphasized the importance of partnering with development finance institutions like Afreximbank and the African Development Bank, which offer blended finance and trade lines that help firms expand efficiently, particularly in sectors like manufacturing, agro-processing, and light industries.
Another key enabler, he noted, is digital technology. Tools such as e-invoicing, digital payments, and electronic trade documentation not only reduce friction and improve trust between banks and SMEs but also allow lenders to monitor performance in real time. By leveraging fintech partnerships, Ghanaian banks can make lending faster, more transparent, and better suited to the needs of modern SMEs.
Dr. Asiama delivered these remarks during a workshop at the Mövenpick Ambassador Hotel in Accra on September 11–12, 2025, organized by the Ghana Association of Banks in collaboration with Afreximbank, the African Development Bank, and the Trade and Development Bank.
By combining finance, knowledge, digital tools, and partnerships, banks can become true enablers, helping SMEs scale sustainably, access new markets, and strengthen the country’s economy.
