The Minister of Finance, Dr. Mohammed Amin Adam, has disclosed that his outfit is in the process of financing a strategy aimed at providing Small and Medium Enterprises with a direct lending avenue.

He argues that the strategy has become necessary to propel the growth of SMEs, which have been plagued by low financing, a critical barrier to accelerating growth and development.

Delivering remarks at the maiden 3i Africa Summit in Accra on May 13, the finance minister emphasised the importance of Ghanaian SMEs which constitute 92% of manufacturing, 70% of growth, and provide 80% of jobs.

Despite this, lack of access to finance has hindered SME growth, hence the need to adopt the strategy along with a strong fintech infrastructure, according to Dr. Amin Adam.

“The Ministry of Finance is finalizing an SME financing strategy which includes 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,” Dr. Amin said.

“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 fund recovery by financial institutions," he added.

The Finance Minister emphasised that the government remains committed to harnessing the potential of Ghana’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,” he concluded.

The 3i Africa Summit aims to build greater momentum and traction for Africa's digital finance agenda.

The three-day summit will facilitate important conversations and strategic alliances to support the growing African digital economy and fintech sector, while promoting innovative solutions.

It is being organized by the Bank of Ghana (BoG), Development Bank Ghana (DBG), and the Monetary Authority of Singapore (MAS) through its subsidiary, Elevandi.

MA/NOQ