Financial institutions urged to support SMEs to grow

The financial institutions have been urged to do more to support the growth of the country’s small and medium scale enterprises (SMEs).

Mr Edmund Quaynor, Vice President of the Journalists for Business Advocacy (JBA), said there is the need to introduce innovative and flexible products targeted at these businesses to facilitate their access to credit.

It is also important to bring down the high interest charges on loans by the banks to make borrowing affordable to SMEs.

He was speaking at a three-day workshop on strengthening businesses through advocacy held for a group of journalists in Kumasi.

The programme provided the platform for the discussion of a wide range of issues including over-taxation of SMEs, the macro-economic environment, poor business documentation and packaging of products.

Sponsored by the Business Advocacy and Challenge (BUSAC) fund, it was meant to adequately equip the journalists to enhance their reports and assist to promote the private sector.

Mr Quaynor called on the Credit Union Associations (CUA) to encourage and support the establishment of credit unions, especially in the rural communities to provide businesses in these areas with access to credit.

He said it is indisputable that given the necessary support, the SMEs could become key parts of the nation’s economy – creating jobs and wealth for the population.

Dr Dale Rachmeler, BUSAC Fund Manager, said the fund is a grant mechanism, which allows the Ghanaian private sector to advocate for changes to the legal and regulatory framework, unfavourable for its growth.

It also aims at helping to establish the right environment for businesses to thrive.

Dr Rachmeler appealed to journalists to become “the voice for the voiceless” and help to articulate the concerns of the private sector.

Source: GNA