The Bank of Ghana has entered into a Memorandum of Understanding (MoU) with the Development Bank Ghana (DBG) to carry out a study on “Innovative Financing for Micro, Small and Medium Enterprises (MSMEs) in Ghana”.
This move by the Central Bank is in response to the critical need for credit in developing economies such as Ghana, and the significant impact of credit on economic growth. The goal is to explore the relationship between credit expansion and economic growth, with particular emphasis on the real sector.
According to First Deputy Governor, Dr. Maxwell Opoku-Afari, the reforms initiated within the banking sector are aimed at establishing stable, well-capitalised, and profitable institutions capable of supporting the real sector and driving economic growth through increased lending.
Dr. Opoku-Afari highlighted the importance of the collaboration between the Bank of Ghana, Development Bank Ghana (DBG), and the University of Ghana Business School (UGBS) in commissioning the study on “Innovative Financing for MSMEs in Ghana”. The study is expected to shed light on the financing challenges faced by MSMEs, identify existing funding gaps, and propose innovative solutions to address these gaps.
The results from the study will be used to inform the regulator on how financial technology firms can be leveraged to bridge the funding gap for MSMEs and facilitate the flow of resources within the economy.
Dr. Opoku-Afari reiterated the commitment of the Bank of Ghana to the success of the collaboration with DBG and assured that the Bank will uphold the MoU in good faith to ensure the study’s success. He also expressed the readiness of the Bank to provide support in any other way necessary to achieve the project’s objectives.
This collaborative effort signifies a proactive approach to addressing the challenges faced by the financial sector and the economy as a whole. The insights gained from the study are expected to inform policies that will promote the growth and development of MSMEs in Ghana.
