GH¢600 million stimulus is peanut, we need GH¢1.8 billion - ILAPI

President of policy think thank, Institute for Liberty and Policy Innovation Mr. Peter Bismark Kwofie has admonished the government to triple the GH¢600 million stimulus package dedicated for small and medium scale businesses.

The figure he said is woefully inadequate for the expected number of businesses who are to benefit from the package.

The National Board for Small-Scale Industries (NBSSI) has projected that some 200,000 businesses will benefit from the disbursement of the GH¢600 million soft loan scheme announced by the President for micro, small and medium enterprises (MSMEs) in the face of the challenges confronting businesses.

The Executive Director of the NBSSI, Mrs Kosi Yankey Ayeh, disclosed this at the press briefing organised by the Information Ministry last week Thursday.

According to her, the board was working hard to support businesses, including those which had come out with innovations.

“Figures from the Statistical Service reveal that micro-enterprises constitute about 80 per cent of the MSME sector; small businesses constitute 15 per cent, and medium enterprises one per cent. So the COVID-19 Alleviation Programme Business Support Scheme is expected to reach over 200,000 MSMEs in total.

“We have done it in such a way that it is representative of the entire sector.”

But reacting to the projection, ILAPI’s president suggested the amount was woefully inadequate.

He is, therefore suggesting an amount of GHc 1.8 billion as a stimulus package for the projected figure.

Speaking on Frontline on Rainbow Radio 87.5Fm, he advised the government to come clean and transparent in selecting the beneficiaries.

The processes he said should be devoid of any form of discrimination.

"The GH¢600 million is woefully inadequate. The number of businesses targeted is a lot and some of them have higher returns for that total number, I strongly believe the amount should be increased. If all the 200,000 businesses are to benefit, then the GH¢600 million is a peanut and an insult to Ghanaian businesses.”

He further advised the government to take a critical look at the kind of businesses to benefit from the package in order not to give out to businesses that are not in need of the support.

He also cautioned against any attempt to select companies that donated into the COVID-19 Relief Fund from benefitting from the stimulus package.