SMEs constitute 92% of manufacturing, 70% of growth and provide 80% of jobs in Ghana – Finance Minister

Finance Minister Dr Mohammed Amin Adam has underscored the important role Small and Medium Scale Enterprises (SMEs) play in propelling growth and job creation.

In Ghana, he said, SMEs constitute 92% of manufacturing, 70% of growth and provide 80% of jobs.

However, Dr Amin Adam noted that low financing to SMEs continues to be a critical barrier to the acceleration of growth and development on the African continent.

“Our focus going forward is, therefore, to generate growth within our borders by increasing access to capital.

“This cannot be achieved without a strong fintech infrastructure; an important requirement to address the efficiency of delivering capital to SMEs and reducing the risks of recovery of funds by financial institutions,” he said while speaking at the opening ceremony of the 3i Africa summit, on Monday, 13th May, 2024, at the Accra International Conference Centre, in Accra.

Held under the theme, “unleashing Africa’s Fintech and Economic Potential”

He stated that “The Ministry of Finance is finalizing an SME financing strategy which has components such as direct lending to SMEs, providing guarantees to financial institutions, reducing the cost of borrowing and supporting skills and innovation in the SME ecosystem through fintechs.

“In my capacity as Ghana’s Finance Minister, I am steadfastly committed to harnessing the potential of our nation’s fintech landscape to drive sustained economic growth and progress. By leveraging the collective knowledge, innovation, and dynamism of our fintech sector, we can unlock new opportunities, generate employment, and accelerate progress towards our overarching development goals.

Ghana’s e-initiatives good model for digital transformation in Africa – Akufo-Addo

“To that end, I humbly ask that we unite and seize every opportunity to harness the transformative power of fintech and build a more inclusive, prosperous, and resilient Africa for generations to come.”

For his part, President Akufo-Addo said that Ghana’s e-government infrastructure has made remarkable strides in the realms of fintech and financial inclusion and stands out as one of the best on the continent.

The President believes that e-government initiatives, such as the Ghana Card, Ghana.gov portal and mobile money interoperability, have reshaped the landscape of public service delivery, and expanded financial inclusion to heights that were once thought unimaginable.

With some seventeen million of our fellow citizens now possessing a digital ID linking them seamlessly to the critical services they need to thrive in the modern world, he said, the Ghana.gov portal has facilitated transactions worth some GH¢1.6 billion since its inception in 2019, improving revenue collection, reducing corruption, and creating a more transparent and accountable system of governance.

President Akufo-Addo added further that with transactions exceeding nine GH¢900 billion annually, Ghana boasts one of the highest mobile money penetration rates in the world, which is further proof of the ingenuity and adaptability of the people.

He added that, “mobile money adoption has increased considerably with   some 44 million accounts registered by the end of 2023, and transactions surpassing GH¢ 1 trillion” whilst the “percentage of adults with access to financial services has risen from 58% in 2017 to some 80% in 2023, representing a remarkable achievement that has transformed countless lives and opened up new horizons of opportunity.”

President Akufo-Addo said the theme of the summit resonates deeply with the aspirations and dreams of the continent, which makes the gathering “not just a meeting of brilliant minds but a resounding clarion call to action and a summons to each and every one of us to rise to the challenge and seize the momentous opportunities that lie ahead.”

“Our fintech regulatory environment has become a hotbed of innovation and competition, attracting the best and brightest minds from across the continent and beyond. And our digital lending platforms have disbursed billions of cedis in loans to micro, small, and medium enterprises, fueling job creation, economic growth, and the rise of a vibrant and dynamic entrepreneurial ecosystem.”

He continued that, without resting on her laurels, Ghana is investing heavily in technology-driven education, vocational training, entrepreneurial development as well as fostering cross-border skills recognition, promoting digital literacy and ensuring that our young people have the confidence and capability to navigate the fintech landscape with ease and aplomb.

On the potential of AfCFTA being a testament to the boundless opportunities it presents, he indicated that, the agreement is projected to increase intra-African trade by some 52% and unleash a wave of economic activity that will generate some $450 billion to Ghana’s collective GDP.

That is why, he was confident that through public-private partnerships and cross-border collaboration, Africa can create a seamless and efficient fintech ecosystem that aligns perfectly with AfCFTA’s objective of a fully integrated, digital African economy.

He called on participants of the summit to build a continent where borders are mere lines on a map, where digital innovation knows no bounds, and where the aspirations of every African can be realized in full, whilst coming together to create a future where the light of progress shines brightly, illuminating the way towards a brighter tomorrow for the continent.