World Bank downgrades implementation of Ghana’s $34.1m MSME project

Since its restructuring, the Ghana Micro, Small and Medium Enterprise (MSME) project is progressing and the World Bank has indicated moderate satisfaction of the level of work on the project.

The $34.1 million project implemented by the Ministry of Trade and the Ghana Tourist Board aims to enhance the competitive and employment levels of Ghanaian MSMEs.

“Implementation progress generally continues to be satisfactory since project was restructured,” the World Bank said January 14, 2013 in an email copied to ghanabusinessnews.com.

The Bank however noted that two key activities which are also on the critical path and would assist make SMEs more competitive have stalled in the past few months. “This is on account of delayed decision making on the client side,” the World Bank says.

“The overall implementation progress is therefore downgraded to Moderately Satisfactory, but will be subject to an upgrade once resolved,” it added.

The MSME project has four components – Access to Finance; Access to Markets, Trade Facilitation and Entrepreneurship Development; Business Environment; and Project Implementation, Monitoring and Evaluation.

An amount of $21.6 million has been disbursed for the project which started May 2, 2006 and expected to be completed June 30, 2013.

In view of funds committed to the delivery of civil works, the World Bank says disbursement rates still look relatively low, however, 90% of undisbursed funds have been committed and once the contract for the drainage system is signed, committed and disbursed funds will be approaching 100%.

By Ekow Quandzie