Jim Baiden
The Chief Executive Officer (CEO) of Fidelity Bank has called for collaboration with the National Entrepreneurship & Innovation Plan (NEIP) to immediately double the $10 million seed capital pledged by government.
Jim Baiden, who made the appeal at the maiden Ghana SME CEOs summit in Accra, said for every cedi of the seed capital that passes through Fidelity Bank, the bank would match it with another one cedi to double the seed capital of $10 million.
“Fidelity Bank recognizes the significance of the SME sector and has created a strong value proposition to meet the needs of SMEs in the various stages of their growth cycle. The bank also recognizes that SMEs in this era are better positioned than at any time to succeed. This is because the SMEs can leverage the technology to adapt to best practices and tap also into the social media space to project their business and sell products in a more cost efficient way.”
He said the SME sector makes up 92 percent of all registered companies in Ghana, and contributes as much as 70 percent to Ghana’s GDP.
“Indeed, if the private sector has been described as the engine of growth for the economy, then I’ll say that SMEs are the fuel that propel the engines,” Mr Baiden said, adding that “the SME sector in this country is poised to lead the transformation of our economy from a raw material export-led economy into one that exports value-added, processed and finished products. I urge all established CEOs in the SME sector, as well as young entrepreneurs emerging in the SME space to be resolute and then stay the course under all the circumstances.”
Ernest De-Graft Egyir, CEO of the Chief Executives Network Ghana Limited, organisers of the CEOs Summit, in a speech, revealed that the Ghana SME CEOs summit would take place in November this year.
Mr De-Graft Egyir said the current economic growth figures did not translate into jobs and wealth distribution, because SMEs were not given the needed attention.
“…Ghana’s economic growth (overall real GDP-including oil growth of 6.3%) is a classic case of growth that has failed to be “inclusive,” a term to describe economic growth with widest participation and benefits,” De-Graft Egyir disclosed.
“How can a 6.3 percent GDP growth rate fail to translate into a commensurate reduction in poverty and up scaling SMEs?,” he asked rhetorically.
“It all boils down to economic expansion with insufficient job creation due to no up-scaling of the local services and manufacturing sectors.”
The summit is expected to feature an exhibition of local SMEs, panel discussions, plenary sessions, open forums and networking sessions all aimed at bringing SME CEOs and government together.
A business desk report