Financial Institutions ineffective in promoting micro-enterprises - Gamey

Accra (Greater Accra), 22 March '99 -

Mr Austin Gamey, Deputy Minister of Employment and Social Welfare, on Monday said the government is concerned that financial institutions are ineffective in promoting micro-enterprises in the country. He said "support from the banks are most often inadequate" and "there is lack of collaboration between banks and other credit intermediation institutions''. Mr Gamey was speaking at the opening of a five-day international seminar on business opportunities in Accra, which is being attended by 30 young graduates from Ghana, Nigeria, Cote d'Ivoire, Senegal and Liberia. It was organised by the Friedrich Naumann Foundation in conjunction with the Africa Leadership Forum, and it is aimed at imparting entrepreneurial skills and facilitate exchange of ideas among young graduates from the Sub-Region. Mr Gamey said the ineffective roles of the banks make it difficult for micro-enterprises to provide proposals and feasibility studies to banks and this hampers economic development. He said the micro-enterprises have enormous potential and are beneficial to the economy in the areas of job creation, development of entrepreneurial and managerial talents, alleviation of the negative consequences of structural adjustment programmes and contribute significantly to the national economy in terms of goods and services. Thegovernment has taken a number of measures to support micro enterprises and the private sector including the promotion of domestic resource-based and export-oriented industries, mineral extraction and processing, engineering and manufacturing. He called for the intensification of Programmes to attract experienced people in public sector administrative positions to go into private businesses. Mrs Eva Maria-Kohler, Country Director of Friedrich Naumann Foundation, whose speech was read on her behalf, said over 400 people from the sub- region have benefited from the training seminars.