German government to support 60 Ghanaian SMEs
A grant scheme meant to provide a comprehensive demand-based support package to 60 small businesses in the manufacturing sector has been launched.
The SME Grant Scheme for Job Creation is a project supported by Invest for Jobs, an initiative of the German Federal Ministry for Economic Cooperation and Development and implemented by the Association of Ghana Industries (AGI).
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An amount of €350,000 has been earmarked to pilot the project.
Consequently, SMEs under the project will benefit from technical training as well as financial assistance for the procurement of critical machinery, tools, and equipment needed for the core operations of their businesses.
It seeks to enhance the productivity, efficiency, competitiveness, innovation and job creation of small and medium enterprises (SMEs) in the country.
Three-day workshop
The project was officially inaugurated during the opening session of a three-day training workshop under the scheme in Accra on February 8.
The SMEs were trained in areas such as supply chain management and financial management. It also served as an opportunity for peer learning among the SMEs.
The Team Leader of Special Initiative on Training and Job Creation (Invest for Jobs), Mr John Duti, explained that the project sought to support SMEs through a combination of technical training (supply chain management and financial management training), business coaching as well as financial assistance for the procurement of critical machinery, tools, and equipment needed for the core operations of their businesses.
He said one of the key objectives of Invest for Jobs was to enhance the productivity and job-creation capacities of Ghanaian SMEs, through the implementation of demand-driven support measures.
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“We are, therefore, very excited to partner the AGI, one of the largest member-based organisations, whose support to the development of the industrial sector over the years cannot be underestimated, in putting together this project to promote the full potential of these SMEs particularly in the area of job creation.”
“By the end of 2022, we expect to create at least 120 jobs through this project.”
“Let me also take the opportunity to congratulate you our SMEs who emerged as finalists out of hundreds of applications and having gone through the rigorous application and selection process,” he said.
Welcome intervention
For his part, the Chief Executive Officer (CEO) of the AGI, Mr Seth Twum-Akwaboah, welcomed the intervention by the GIZ as timely for the industry.
He urged the beneficiary SMEs to take full advantage for the benefit of their various businesses.
He stressed that the AGI shall continue to work with GIZ to extend the intervention based on the successes to be chalked up with the current project.
Manufacturing sector
According to the Ghana Investment Promotion Centre (GIPC), the manufacturing sector is the fourth largest sector of the Ghanaian economy and represents about 92 per cent of establishments in Ghana’s industry sector.
Manufacturing also contributed GH¢19,195 million to the country’s Gross Domestic Product (GDP), representing 10.44 per cent of GDP in 2019, and remains one of the major sources of employment for the nations’ workforce accounting for 18.6 per cent of total employment.