Ghana has signed a Memorandum of Understanding (MoU) with the ECOWAS Bank for Investment and Development (EBID) to secure a $200 million facility for lending to Small and Medium Enterprises (SMEs).
In a huge boost for the SME sector, the president disclosed that the Finance Minister signed the MoU on behalf of Ghana on Friday, May 10, 2024.
He revealed these on Monday at the plenary session of the ongoing 3i Africa summit in Accra.
President Akufo-Addo said the government is fully committed to funding the operations of SMEs at lower interest rates to sustain their operations.
He also highlighted fintech’s crucial role in facilitating funds’ distribution to SMEs and monitoring their growth, underscoring the importance of leveraging technology to foster economic development and empower entrepreneurs.
President Akufo-Addo reiterated Ghana’s commitment to investing significantly in technology-driven education, vocational training, and entrepreneurial development to address current challenges and provide meaningful opportunities for the country’s youth while fostering confidence.
He stressed the need for young people to confidently navigate the fintech landscape while cautioning against complacency and emphasizing the necessity for continued action.
Bank of Ghana (BoG) Governor Dr. Ernest Addison, taking his turn, highlighted the country’s booming mobile money sector, with over 900 billion transactions last year. But challenges remain across Africa, Dr. Addison pointed out, with a “general lack of investor visibility” hindering many local fintech startups from scaling up to meet diverse financial needs.
Finance Minister Dr. Mohammed Amin Adam noted that fintech offers unprecedented opportunities to bolster financial inclusion and empower more individuals to participate meaningfully in the formal economy.
And while Ghana has made “remarkable strides,” Dr. Adam said, a conducive macroeconomic environment is essential, outlining measures to control inflation, reduce currency depreciation and accelerate disbursements from development partners.
