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Business News of Monday, 29 June 2020


Association of Ghana Industries calls for policies to enhance MSMEs growth

Yaw Adu Gyamfi, President, AGI Yaw Adu Gyamfi, President, AGI

The Association of Ghana Industries (AGI) has urged the government to implement policies that will help Micro, small and medium enterprises (MSMEs) build resilience, local production capacity and enhance medium-term growth.

In a statement signed by Mr Humphrey Ayim Darke, the AGI Vice President to mark the International MSMEs day, the Association said it would continue to dialogue with the Government to ensure sustainable development of our MSMEs in Ghana.

“Our SMEs can continue to count on the advocacy and business development support of AGI and we urge you to cooperate with us to work towards improving the business environment for your businesses to thrive,” it said.

The statement re-affirmed the AGI commitment to the development of MSMEs in Ghana, which represents an estimated 90 percent of all businesses in Ghana.

MSMEs in Ghana are key actors in job creation, revenue generation for Government, and contributing to GDP through various economic activities, it said, adding that many advanced economies today attribute their growth and success to the role of MSME in national development and Ghana is not an exception.

The statement highlighted access to and cost of credit of two major decade-old bottlenecks faced by MSMEs, yet available SME financing schemes had not been able to null the void.

“For this reason, our MSMEs remain undercapitalized. Our SMEs continue to yield to pressure from imports and unfriendly business regulations. COVID-19 has also taken a significant toll on our local industry of which MSMEs were the worst hit,” it said.

A number of these firms have had to suspend business operations with other downsizing to keep afloat.

While we commend the Government for the Gh¢ 600 million relief package and the 50 percent subsidy on electricity, AGI believes the sustainability and timeliness of Government interventions were crucial for the continuity of business.

We welcome efforts by the Government to extend similar relief support to the large-scale enterprises as well, it said.

The statement commended development partners such as UNIDO, BUSAC FUND, NBSSI, Star Ghana, the E.U., GIZ, and business associations for the collective effort in supporting MSME development in the country.