AGI calls for stimulus fund for SMEs

The Association of Ghana Industries (AGI) has reiterated the need for the government to set up a stimulus fund of GH¢1 billion as a short-term measure to fund small and medium-scale enterprises (SMEs) in the country.

According to the association, it had become expedient for the government to take proactive measures to support SMEs.

The President of the AGI, Mr James Asare-Adjei, said the failure, delay or inability of the government to respond to the call could have serious implications for SMEs’ activities in Ghana.

He was speaking at the Helaba Business Excellence awards in Accra last Sunday.

The programme was supported by Helaba Business, a German financial institution that gives credit and loans to SMEs, private businesses and start-ups.

Since its inception in Ghana in 2007, Helaba Business has given a total amount of €30 million to SMEs, private businesses and start-ups in the country.

It recognises Ghanaian companies for their sterling performances in the country.

In all, three companies were rewarded for good corporate management and governance, high level of business confidence, among others.
The companies were Wilhalm Limited, Justmoh Mining Services Limited and Joshob Construction Limited.

Theme of function

Speaking on the theme, “International business loans for Ghanaian industries; roadblocks from the perspective of AGI,” Mr Asare-Adjei said instability of the economy and rise in inflation were some of the blocks that deterred foreign companies from supporting local industries, especially SMEs.

He said a major constraint to accessing international loans by SMEs was the cultural differences, adding that “with the coming of Helaba Business into Ghana, I believe that SMEs can easily have access to soft loans that Ghanaian banks are not ready to offer them”.

Government’s efforts

In his address, the Minister of State in charge of Public-Private-Partnership, Mr Rashid Pelpuo, said the government was doing all it could to provide a conducive environment for SMEs and business start-ups to operate.

He noted that Ghanaian businesses lacked funding and experience and said “very soon the government will organise an SME Fair to bring together stakeholders to forge the way forward on how to assist small businesses in the country to excel”.

He challenged SMEs to think outside the box in order to devise other means of funding for their businesses.