Rédaction Africa Links 24 with Ghanaian Times
Published on 2024-02-27 08:14:27
The Bank of Ghana (BoG), Development Bank Ghana (DBG), and the University of Ghana Business School (UGBS) have joined forces to tackle the challenges hindering the growth of Micro, Medium, and Small-scale Enterprises (MSMEs) in Ghana. Through a Memorandum of Understanding (MoU), the three institutions have initiated a nationwide study titled “The MSME Innovative Financing Project,” which is being carried out by UGBS and is expected to be completed by the end of April.
The primary aim of this study is to gather fresh empirical evidence on the financing gap faced by MSMEs and to explore innovative schemes that financial institutions can implement to drive the development of the MSME sector. The First Deputy Governor of the BoG, Dr. Maxwell Opoku-Afari, emphasized the importance of understanding the financial challenges MSMEs encounter in Ghana, identifying the funding gap that exists, and proposing new and creative ways to address these gaps. He highlighted the significance of credit and credit delivery in the economic development of the country, especially in a developing economy like Ghana.
The Dean of UGBS, Professor Justice Bawole, expressed excitement about being a part of this project, aligning with the school’s research mandate. He hoped that the collaborative program would generate practical solutions to the obstacles facing MSMEs. Dr. Kwabena Opuni Frimpong, the Chief Economist, and Head of Research at DBG, applauded the collaboration between the regulator, private sector, and academia, recognizing the importance of jointly studying the challenges MSMEs face and providing recommendations to address them.
The Principal Investigator of the Project, Professor Eric Osei-Abbey, stressed the necessity of this study considering the vital role MSMEs play in job creation and economic growth in Ghana. He highlighted that MSMEs account for about 90% of job creation and contribute approximately 70% to the country’s Gross Domestic Product. The study aims to assess the real and perceived risks associated with financing MSMEs, explore the drivers of Fintech adoption in MSME financing in Ghana, and investigate innovative financing arrangements adopted by MSMEs within existing constraints.
Ultimately, the goal of this study is to generate a reliable document that will inform policies promoting innovation in financing MSMEs to stimulate employment and economic growth in the country. By addressing the financing challenges faced by MSMEs and providing innovative solutions, the collaboration between BoG, DBG, and UGBS seeks to support the growth and sustainability of MSMEs in Ghana. The signing of the MoU marks the beginning of a comprehensive effort to support the MSME sector and contribute to the overall economic development of the country.
Read the original article on Ghanaian Times
