$300,000 deal to support SMEs

Story: Boahene Asamoah

A $300,000 trade development project agreement has been signed between Ecobank Transnational Incorporated (ETI), the West African financial institution, and the United States Agency for International Development (USAID) to promote a cordial relationship between commercial banks and the Small and Medium-Scale Enterprises (SMEs) in the country.
The project, which has the tag line “Promoting Trade through Access to Credit”, is a one-year pilot programme to support and promote SMEs especially those in the export sector of the country.
The United States of America Ambassador to Ghana, Ms Pamela Bridgewater and the USAID West African Mission Director, Dr Jatinder Cheema, initialled on behalf of the US, while the Group Chief Executive Officer of ETI, Mr Arnold Ekpe signed on behalf of ECOWAS Transnational Incorporatoin( ETI)
Speaking at the signing ceremony, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Alan Kyeremanten, said the project was important as it would ensure trade promotion within the sub-region of West Africa.
He said the project, which was targeted at SMEs would also ensure the development of SMEs, which constituted about 90 per cent of all businesses in the country.
Mr Kyerematen further stated that the provision of credit as a component of the project was also welcome as credit to business was one of the major challenges facing business development in the country.
Ms Bridgewater said the project which was targeted at SMEs in the country, is an indication of how important SMEs were in the economic development of the country.
She said the ceremony was important as it would help bridge the financial gap between SMEs and the financial institutions and also provide technical support for SMEs.
Ms Bridgewater said the project was part of the US government’s efforts to promote capacity building in trade under the African Global Competitiveness Initiative to ensure that countries within the sub-region took advantage of export opportunities under the African Growth and Opportunities Act (AGOA).
A Deputy Governor of the Bank of Ghana, Dr Mahamudu Bawumia, said the central bank supports any attempt to nurture and develop the SME sector of the economy.
He reiterated that the project was important as it would help promote trade and investment within the West African sub-region.
He called for the enforcement of the Ecowas Trade and Liberalisation Scheme to deepen trading within the sub-region.
He said the passage of the Foreign Exchange Act was to further promote regional trading between Ghana and its neighbours.
Mr Ekpe said trade and investments within the sub-region were fundamental to the economic growth of the sub-region.
He said the agreement was in line with the core foundations of the bank to promote regional trade and investments and said the bank was excited to be part of the programme.