The Minister of Finance, Dr. Mohammed Amin Adam has revealed that despite low financial support, 80 percent of jobs, 70 percent of growth, and 92 percent of manufacturing in Ghana come from SMEs.
He was speaking to African policymakers, fintech innovators and investors at the opening of the maiden 3i Africa Summit held at the Accra International Conference Centre (AICC).
The three-day summit creates a unique platform for finance, policy and technology to converge and partner effective to drive development in Africa on the back of digital finance.
One of the most critical sectors that needs to ride on digital finance rails to drive development on the continent is the SME sector. But the challenge financial institutions have with that critical sector is the high risk associated with them, characterized by huge loan default rates.
The Finance Minister however noted that SMEs are crucial to accelerating growth and job creation, but they face significant obstacles.
He said the aim of his ministry is to expand financial access in order to spur growth, which is crucial to improving the effectiveness of capital delivery to SMEs and lowering the risks associated with financial institutions recovering cash.
Dr. Amin Adam added that the Ministry of Finance is putting the finishing touches on a SME financing plan that includes direct funding to SMEs, guarantees for financial institutions, lower borrowing costs, and fintech-supported innovation and skill development in the SME ecosystem.
“In my capacity as Ghana’s Finance Minister, I am steadfastly committed to harnessing the potential of our nation’s fintech landscape to drive sustained economic growth and progress. By leveraging the collective knowledge, innovation, and dynamism of our fintech sector, we can unlock new opportunities, generate employment, and accelerate progress towards our overarching development goals,” he stated.
Dr. Amin Adam urged Africa leaders to band together and take advantage of every chance to harness the revolutionary potential of fintech in order to create a more resilient, inclusive, and successful Africa for future generations.