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Stakeholders in the financial sector have convened in Accra at a Public Private Dialogue
to discuss practical ways to improve access to trade finance for Small Medium Enterprises
(SMEs) in the country.
The Public Private Dialogue (PPD) which was organized by a leading Research and Public
Policy think tank, CUTS International Accra with support from GIZ Ghana sought to
engage relevant stakeholders on how to practically improve businesses and SMEs’ access
to trade finance, especially now that African Continental Free Trade Agreement (AfCFTA)
is operationalized.
In his welcoming remarks, the West African Regional Director of CUTS International, Mr
Appiah Kusi Adomako explained that with the commencement of Trading under AfCFTA
in January 2021, government and banks in the country must retool their trade finance
packages to support SMEs in Ghana to make them competitive and improve their
businesses and service.
“Businesses and SMEs, require finance to be able to increase their business and improve
their services to fulfil the demands of the growing market and AfCFTA. However, most of
these SMEs in Ghana, similar to other African countries, face obstacles when trying to get
trade financing, hence the call on government and financial institutions to support SMEs”
Mr Adomako explained.
He added that access to trade finance is listed as one of the biggest problems that SMEs
in Ghana must deal with.
Mr Adomako explained that “the AfCFTA presents a rare opportunity for businesses
across the continent to be able to export goods, largely quota-free and duty-free.
On the parallel side also, member countries can equally import from one country to the other
without any quantitative restriction. Even if an SME is not willing to export under the
AfCFTA agreement, it must ensure that it is competitive at the local market as it can face
competition from other African imports.”
Mr Adomako emphasized that “the establishment of the Development Bank Ghana (DBG)
by Government of Ghana, aimed at providing long-term and competitively priced loans to
SMEs who have long struggled with the problem of access to finance to ensure that SMEs
are better financed in critical sectors of the economy. While I commend the government
for this great initiative, there is the need to create a good and friendly business
environment and tailor-make policies and initiatives for the private sector, to guarantee
SMEs have access to trade financing to support the growth and expansion of their
business to other countries”.
In addition, Mr Adomako explained there is the need to also create a good and friendly
business environment and tailored-made policies and initiatives for the private sector, to
guarantee SMEs have access to trade financing to support the growth and expansion of their business to other countries”.
An Economist with the Bank of Ghana, Mr Kwasi Acheampong also emphasized that the
Bank of Ghana is putting in measures to cushion businesses and support SMEs
development.
He said although the country is going through some economic difficulties, the Bank of Ghana is committed and is rolling out strategies and measures to address the current economic state of play.
On his path, the Technical Advisor at the GIZ Trade Hub, Mr James Amisssah Hammond
underscored the critical role SMEs play in the success of the AfCFTA, their contribution
to Ghana’s GDP and trade.
He explained that GIZ has conducted several training programs on the AfCFTA, rules of
Origin to build the capacity of the SMEs and improve their knowledge and awareness of
the Agreement.
He emphasized GIZ’s commitment to support SME development to unlock their potential to position them to benefit the AfCFTA.
In attendance where representatives from Bank of Ghana, US Embassy, European Union,
Zenith Bank, Ghana National Chamber of Commerce and Industry, Ministry of Foreign
Affairs and Regional Integration, Absa Bank, Association of Bankers, Chartered Institute
of Bankers, KPMG, Ghana Revenue Authority, Ghana Enterprise Agency, Ministry of Trade
and Industry, Cal Bank, ARB Apex Bank, Prudential Bank, Economics Department of
university of Ghana, Ghana Investment Promotion Centre (GIPC), GT Bank, GBC Bank Plc,
FBN Bank among others, Private Enterprise Federation, the media and SMEs in Accra.
About CUTS International
CUTS International is an independent non-profit economic policy research, advocacy and
capacity building think tank with regional centers in Accra, Lusaka, and Nairobi, Geneva,
Delhi, Jaipur and Washington, DC. CUTS functional areas are in trade and development,
regional integration, competition policy, education, healthcare, fiscal policy, economic and
investment regulation as well as consumer education.
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