Ghana’s Ministry of Trade, Agribusiness, and Industry, under the leadership of Minister Elizabeth Ofosu-Adjare, has embarked on a comprehensive initiative to bolster the nation’s Micro, Small, and Medium-sized Enterprises (MSMEs) by significantly expanding access to affordable credit. Recognizing the vital role MSMEs play in the Ghanaian economy, the government acknowledges the persistent challenges these enterprises face, including limited access to finance, bureaucratic hurdles in registration processes, and the burden of costly infrastructure. These obstacles often stifle growth and prevent these businesses, known for their innovation and resilience, from reaching their full potential. The government’s proactive approach aims to unlock the untapped potential of MSMEs by directly addressing these systemic limitations.
The core of the government’s strategy revolves around the development of new financing arrangements tailored to the specific needs of MSMEs. This includes the exploration of innovative guarantee schemes that mitigate risk for lenders and encourage greater lending to smaller enterprises. Furthermore, the Ministry is actively forging partnerships with development finance institutions, leveraging their expertise and resources to further reduce borrowing costs and alleviate the often-prohibitive collateral requirements that typically hinder MSMEs’ access to capital. By facilitating access to more favorable financing options, the government aims to empower MSMEs to invest in expansion, enhance their operations, and create more job opportunities.
In addition to addressing financing challenges, the government is also proactively engaging with financial institutions and rapidly evolving fintech companies. This collaborative approach seeks to foster innovation in financial product development, specifically targeting the unique requirements of small enterprises. This includes promoting the design and implementation of mobile credit solutions, which leverage the widespread accessibility of mobile technology in Ghana, to provide convenient and readily available credit lines. Further, the government advocates for zero-fee transactions, minimizing the financial burden on MSMEs and encouraging greater participation in the formal financial sector. Finally, the development of merchant-friendly platforms aims to streamline business operations and enhance access to markets and consumers.
Recognizing the need for a holistic and up-to-date framework, the government is also undertaking a thorough revision of the national MSME and Entrepreneurship Policy. This revision aims to align the policy with the current realities of the MSME sector, incorporating lessons learned and best practices while addressing emerging challenges and opportunities. Crucially, the revised policy will be underpinned by a detailed and costed implementation plan, ensuring that the policy’s objectives translate into tangible and measurable outcomes. This commitment to a well-defined implementation strategy underscores the government’s dedication to not just formulating policy but also ensuring its effective execution and impact.
The significance of these initiatives was highlighted during the national celebration of the 2025 International MSMEs Day, held in Accra under the theme “Connecting the Entrepreneurs: Unlocking Digital Opportunities for MSMEs.” This event, hosted by the Ministry in collaboration with the United Nations in Ghana, served as a platform to showcase the government’s commitment to supporting the growth and development of MSMEs. It also provided an opportunity to recognize the vital contributions of MSMEs to the national economy and to discuss strategies for further empowering these enterprises.
The event received crucial support from the UN Joint Programme Leveraging Digital Ecosystems for Increased MSME Productivity, a program funded by the Joint SDG Fund with contributions from the European Union and other UN Member States. This international collaboration highlights the global recognition of the importance of supporting MSMEs and the shared commitment to leveraging digital technologies to enhance their productivity and competitiveness. The focus on digital opportunities underscores the transformative potential of technology in enabling MSMEs to access new markets, improve operational efficiency, and integrate into the global economy. The government’s multi-faceted approach, encompassing access to finance, policy reform, and digital empowerment, demonstrates a comprehensive strategy aimed at unlocking the full potential of Ghana’s MSME sector.
