Following the learnings of the first programme during the coronavirus pandemic, the Ministry of Finance in collaboration with the Ministry of Trade and Industry has launched the SME Growth and Opportunity Programme, a financing programme for small, medium and large-scale enterprises (SMEs) in the country. There are three financing windows through the Ghana EXIM Bank, Development Bank Ghana and Ghana Enterprises Agency.
SMEs could benefit from GH¢150,000 to GH¢20 million for capital expenditure. In addition to the funding amounts, Ghana EXIM Bank would further provide some support and that will be reviewed on a case-by-case basis. Also, projects classified under the government’s ‘one district one factory’ (1D1F) programme could benefit between GH¢1 million and GH¢5 million in funding depending on the nature of pipeline projects. Minister of Finance, Mohammed Amin Adam, notes that the programme is the largest SME financing in the history of Ghana and Africa. According to him, citing indicative research, “the four biggest inhibitors of SME development are access to finance, access to market, access to business development support and a complex tax system with constraints to formalisation.”
Again, under the programme, start-ups that prove a very good and viable business plan will each receive GH¢300,000 in funding from Ghana EXIM Bank. The Development Bank Ghana (DBG) on the other hand works with Partner Financial Institutions (PFIs) that they would give money to who will on-lend to medium to large businesses. According to an official of the Ministry of Finance, instead of DBG having contact with businesses directly, the businesses would have to go through the PFIs for a funding amount of up to GH¢50 million.
He said, “Ghana Ex-Im Bank is ready to give funding between 1 million and 5 million Ghana Cedis, depending on the nature of the pipeline projects. So basically, that’s the financing window under the EXIM Bank. Now, with the Development Bank Ghana, they have their PFIs, their Partner Financial Institutions, that they would give money to, that they would on-lend to businesses.
So instead of coming into contact with the businesses directly, businesses would have to go through the PFIs, depending on how viable their projects are. And their funding would be more of medium to large businesses. So, funding of even up to about 50 million Ghana Cedis is possible under that particular window.”
With Ghana Enterprises Agency, businesses can access up to a maximum of GH¢1 million. However, there is a grant component of GH¢150,000 for startups employing between 1 and 30 persons with a turnover of GH¢6 million. The grant amount is decided on a case-by-case basis and can be used for basic capital expenditure, operating expenditure and compliance fees.
The programme which kicked off on the 16th of July, 2024 is currently at the sensitisation phase and receiving applications from eligible businesses, it will soon enter the selection and training phases and then disbursements. Learn more about the SME GO programme here: https://sme-go.gov-gh.com/