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Ghanaian President, Nana Addo Dankwa Akufo-Addo on Tuesday, May 19, 2020, launched a GH¢1 billion ($173 million) micro, small and medium enterprise support package to help them make dealing with the consequences of the covid-19 pandemic. SMEs account for 70% of the country's GDP and, in number, 92% of registered businesses. “This amply underlines the important role that SMEs play in the growth and development of our economy, requiring special attention from the government,” the president said.

Launching the program at Jubilee House, the seat of the presidency, President Akufo-Addo explained that the outbreak of the coronavirus pandemic has had a devastating impact on all economies around the world, with reduced productivity, loss of jobs and a sharp drop in income for government, businesses, households and individuals in Ghana.

Of the 1.2 billion cedis earmarked for this programme, GH¢600 million will be disbursed in the form of soft loans to SMEs, with a moratorium of up to one year and a repayment period of two years. The interest rate on the government's six hundred million cedi (GH¢600 million) facility is three percent (3%).

In addition, some participating banks will provide negotiated matching funding of up to GH¢400 million, totaling GH¢1 billion for disbursements under this business support program, with the whole plan expected to attract some 180,000 beneficiaries across the country. The funds to be managed by the national office in charge of SMEs (National Board for Small Scale Industries, NBSSI) and supervised by a loans committee, composed of one representative each from the ministries of Finance and Trade and Industry , a representative of the NBSSI and a representative of the participating banks. The audit firm KPMG will act as technical adviser to the program.

Kosi Yankey Ayeh, Managing Director of NBSSI.

“Disbursement of funds will be made through participating banks. Transparency and accountability will be the watchwords for the operation of the program”, insisted the president.

President Akufo-Addo said the program targets SMEs in the formal and informal sectors, which have been affected by the economic downturn caused by the pandemic. SMEs in growing sectors in need of additional capital to expand their businesses to meet the growing demand for COVID-19 related products and services are also eligible. Beneficiary sectors include agro and agribusiness, manufacturing, water and sanitation, tourism and hospitality, education, agribusiness, technology, transport, trade , health care and pharmaceuticals, textiles and clothing. Applicant companies are requested to upload the application on the NBSSI website.