Banks urged to design strategies to aid SMEs
Ms Hanna Tetteh, Minister of Trade and Industry, has reiterated the need for financial institutions to design innovative products and services to address financial challenges of Small and Medium Enterprises (SMEs).
She noted that the country could consolidate its present macro-economic stability only when significant resources were channeled into the private sector and the SMEs in particular, to spur the growth of the economy.
It was therefore important for them to have clear policy for SME target groups taking into account their peculiar requirements.
Ms Tetteh made the call in an address read for her at the first banking seminar held at the Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi on Tuesday.
The three-day programme, under the theme: “Facilitating SME Development in Ghana: The Role of Universal Banks”, is being organized by the KNUST School of Business and the Ghana Association of Bankers (GAB), to create a platform for universal banks to enlighten micro, small and medium enterprises and academia on their operations.
Ms Tetteh spoke the Government’s determination to build sound macro-economic environment that would ensure that the private sector was not crowded out.
It would continue to maintain fiscal discipline to stimulate growth, reduce inflation and bring down interest rate.
Additionally, they were developing strategies to strengthen the management and operational capabilities of SMEs.
Ms Tetteh urged the banks to sign on to the Credit Reference Bureau in order to ascertain the risk profile of their SME clients to enable them lower the cost of capital to the private sector and make borrowing more affordable.
She commended KNUST Business School and GAB for the initiative to bring banks and the business community together to share ideas.
Mr Asare Akuffo, President of GAB, called for effective collaboration between academia and industry to speed up national economic development.
Professor William Otoo Ellis, Vice Chancellor of KNUST, who chaired the function, said in line with its resolve to work with industry, KNUST had established a business development centre – housing SME development centre and the business incubator.
He said they would continue to assist students to develop entrepreneurial skills.
Source: GNA