The Ghana Enterprise Agency (GEA) says it is working assiduously to bridge the finance gap being experienced by micro, small, and medium enterprises (MSMEs) in accessing funds for smooth operations.
At a seminar co-hosted by the UK-Ghana Chamber of Commerce (UKGCC) and its platinum member company, the Consolidated Bank Ghana, the acting director in charge of finance and support services at GEA, Eric Afram, said efforts are being done to get funding for MSMEs.
Sharing some of the interventions the agency has rolled out, Afram said: “We had some funding from the Exim Bank for more lending to businesses that are into products which are exportable. It’s an evolving fund, which we are still operating.”
He also noted that the government gave his outfit some GHC600 milion to be disbursed to MSMEs which were badly hit by the pandemic.
“We have disbursed to over 300,000 MSMEs so far,” he said. “We also got some COVID related funds from the World Bank which is known as the COVID-19 response grant. In all, 373 people benefited from the first phase and about 134 jobs were also created.”
Also speaking at the seminar, the General manager of business ranking at the Consolidated Bank Ghana, Michael Kwansah attributed the difficulty in getting access to capital by MSMEs to the risky nature of most businesses and the lack of proper records.
Kwansah said, “One of the major challenges with the MSMEs is that their plans are mostly, not realistic. Most do not bank their sales and a lot more do not keep records.”
He therefore advised MSMEs to ensure proper book keeping.
“Keeping books and banking of sales is a fundamental thing every MSME must do. If this is done, no collateral will even be required if you apply for a loan.”
Philip Bright Abutiate
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