– Finance Minister
The Finance Minister, Dr. Amin Adams, emphasized the critical role of Small and Medium Enterprises (SMEs) in driving the country’s economic recovery, as the government seeks to mitigate the impacts of inflation, currency depreciation, and post-pandemic challenges.
Speaking at the 2nd Quarterly Economic Roundtable at the University of Ghana (UG), Dr. Adams described SMEs as the “backbone of the economy” and stressed their critical contribution to revitalizing growth, creating jobs, and fostering innovation.
SMEs account for more than 80 percent of businesses in the country and play a key role in generating employment, particularly for the youth, Dr. Adams noted.
He highlighted that the sector’s success is essential to the country’s broader economic performance, including reducing imports, boosting domestic production, and driving sustainable growth in industries such as agriculture, manufacturing, and services.
“SMEs are pivotal in addressing unemployment and poverty reduction,” Dr. Adams said, adding that expanding support for small businesses could generate job opportunities and income for local communities, helping the country to recover from the economic shocks of the pandemic and global disruptions.
One of the major challenges facing SMEs, the Minister indicated, is limited access to finance. The government, he said, is committed to providing financial support through programs such as the Ghana Enterprise Agency (GEA) and the National Entrepreneurship and Innovation Programme (NEIP), which offer grants, low-interest loans, and capacity-building initiatives. Efforts are also underway to collaborate with financial institutions to ease lending terms, as many small businesses struggle with high borrowing costs and restricted access to credit.
To further boost the SME sector, Dr. Adams announced the launch of the SME Growth and Opportunity Programme (SME-GO), which will address key issues such as finance, market access, and complex tax systems. The government has already injected GH¢8.2 billion into the program, designed to strengthen SMEs as a driver of economic growth.
This initiative complements other projects, including the Ghana Jobs and Skills Project and the Ghana Economic Transformation Project.
The Finance Minister also called on SMEs to embrace digital transformation as a way to enhance their competitiveness. He outlined government initiatives aimed at equipping businesses with digital tools and skills to thrive in the modern economy. E-commerce platforms, digital payment systems, and online business models are part of the strategy to help SMEs adapt to a fast-evolving global market.
Dr. Adams emphasized the government’s commitment to creating an enabling environment for SMEs through regulatory reforms aimed at simplifying business registration, reducing bureaucratic hurdles, and improving access to markets.
Additionally, tax incentives and reliefs for SMEs are under consideration to reduce their financial burden, especially during economic uncertainty.
The country’s recovery strategy places particular focus on SMEs in the agricultural and industrial sectors, with initiatives like the “One District, One Factory” (1D1F) program seen as critical to rural development and industrialization. The government aims to support local manufacturing and reduce dependency on imports, positioning SMEs as key contributors to self-sufficiency and economic resilience.
“We aim to empower SMEs to drive growth, create jobs, and stimulate innovation,” Dr. Adams said, reaffirming the government’s commitment to financial support, policy reforms, and digital transformation initiatives. With the right backing, he added, SMEs could serve as the engine of a robust and more resilient economy.
