Despite little financial assistance, SMEs account for 80% of jobs, 70% of growth, and 92% of manufacturing in Ghana, according to Finance Minister Dr. Mohammed Amin Adam.
At the inaugural inauguration of the third Africa Summit, which took place at the Accra International Conference Centre (AICC), he addressed investors, fintech entrepreneurs, and African officials.
The three-day conference offers a special forum for the effective convergence of technology, policy, and finance to support African growth through digital money.\
The SME sector is one of the most important ones that must travel on digital finance rails in order to propel development throughout the continent. However, the problem that financial institutions have with that vital industry is the significant risk that comes with it, which is typified by extremely high loan default rates.
SMEs, the Finance Minister pointed out, are essential to boosting economy and creating jobs, but they confront many challenges.
In order to improve the efficiency of capital delivery to SMEs and reduce the risks associated with banking institutions recovering funds, he added, his ministry’s goal is to increase financial access in order to promote growth.
A SME financing strategy that combines direct assistance to SMEs, guarantees for financial institutions, lower borrowing costs, and fintech-supported innovation and skill development in the SME ecosystem is being finalized by the Ministry of Finance, according to Dr. Amin Adam.
As the Minister of Finance for Ghana, I am resolutely dedicated to utilizing the fintech environment of our country to promote long-term economic development and advancement. We can create jobs, open up new opportunities, and move closer to our broader development goals by utilizing the creativity, energy, and collective knowledge of our fintech sector, the speaker said.
Leaders in Africa, according to Dr. Amin Adam, should unite and seize every opportunity to utilize fintech’s revolutionary potential in order to establish a more resilient, inclusive, and successful Africa for future generations.
