3i Summit: Low SME financing bane of faster growth in Africa – Amin Adam

The Finance Minister, Dr. Mohammed Amin Adam, has highlighted the low financing of SMEs as a critical barrier to accelerated growth and development on the African continent.

According to him, in Ghana, SMEs make up 92% of manufacturing and 80% of jobs, and they require funding for effective operations, capital expansion, and skill provision.

He said the focus of the ministry going forward, however, is to bolster the domestic economy by expanding capital access, which is impossible to do without a robust fintech infrastructure.

“Our focus going forward is therefore to generate growth within our borders by increasing access to capital; this cannot be achieved without a strong fintech infrastructure, an important requirement to address the efficiency of and reduce the risk of fund recovery by financial institutions,” he said.

The Minister also announced the completion of an SME financing strategy, which includes direct lending to SMEs, financial institution guarantees, borrowing cost reduction, and fintech support for SMEs.

“The Ministry of Finance is finalising an SME financing strategy that has components such as direct lending to SMEs, providing guarantees to financial institutions, reducing the costs of borrowing, and supporting skills and innovations in the SME space through fintech,” Dr. Adam added.

He said that in his capacity as Finance Minister of the country, he is steadfastly committed to harnessing the potential of the nation through the fintech landscape to sustain economic growth and progress.

This he intends to do by leveraging the collective knowledge, innovation, and dynamism of the county’s fintech sector to unlock opportunities, generate employment, and accelerate progress.

The Minister made these remarks on Monday, May 13, 2024, during the opening ceremony of the 3i Africa Summit, ongoing at the Accra International Conference Centre.