In an effort to promote economic growth and support small businesses in Ghana, the Bank of Ghana has signed a Memorandum of Understanding (MoU) with the Development Bank Ghana (DBG) to commission a study on “Innovative Financing for Micro, Small and Medium Enterprises (MSMEs) in Ghana”.
The Central Bank has highlighted the crucial role of credit in developing economies, such as Ghana, as it is closely linked to economic growth.
First Deputy Governor, Dr. Maxwell Opoku-Afari, emphasized the significance of credit expansion in fostering economic growth and stated that the impact of policies on the real sector is carefully considered. The ongoing reforms within the banking sector aim to create stable and profitable institutions capable of supporting the real sector and increasing lending.
The study on “Innovative Financing for MSMEs in Ghana” aims to address the financing challenges faced by small businesses, identify the funding gap, and propose innovative solutions to close this gap.
It is expected to generate anecdotal evidence and understanding of the financing challenges MSMEs encounter in Ghana. Additionally, the study will provide valuable insights into how financial technology firms can be utilized to channel resources from surplus-spending units to deficit-spending units, particularly MSMEs. These findings will help inform the regulator on potential methods for enhancing access to financing for small businesses.
Dr. Opoku-Afari expressed enthusiasm for the collaboration between the Bank of Ghana, DBG, and the University of Ghana Business School (UGBS) in conducting this study. He stressed the importance of successful collaboration in addressing the challenges faced by the financial sector and the economy as a whole. The Bank of Ghana is committed to the project’s success and assured its full support in observing the MoU.
The Bank of Ghana’s collaboration with DBG and UGBS represents a significant step towards creating an enabling environment for the growth of MSMEs in Ghana.
By identifying innovative financing solutions, the study aims to contribute to the development of a stronger and more resilient economy, fostering entrepreneurship, and creating opportunities for small businesses to thrive.
By Vincent Kubi