The Governor of the Bank of Ghana (BoG), Dr Johnson P. Asiama, has called on banks in the country to adopt innovative financing models to support Small and Medium Enterprises (SMEs) to integrate into sustainable global value chains.
He said the traditional collateral-based approach to SME financing was inadequate, and urged financial institutions to embrace alternatives such as supply-chain finance, cash-flow lending, purchase-order financing and stronger risk-sharing mechanisms.
Speaking at a workshop on Supporting SMEs to Sustainable Global Value Chains organised in Accra by the Ghana Association of Banks (GAB) in collaboration with Afreximbank, the Trade and Development Bank (TDB) and the African Development Bank (AfDB), Dr Asiama stressed that “finance remains the oxygen of enterprise.”
“If we want our SMEs to scale and integrate into sustainable value chains, then our banks must be at the centre of this effort. Our SMEs are not risky outliers; they are the future growth drivers of your portfolios,” he said.
The Governor said across the world SMEs constituted about 90 per cent of businesses and contributed over 50 per cent of employment, yet access to finance remained their biggest constraint.
He cited World Bank and IFC data which estimates a financing gap of about $8 trillion globally for MSMEs, describing it as “not just about missed loans, it’s about lost innovation, jobs and exports.”
Dr Asiama noted that for Ghana, plugging SMEs into regional and global value chains was central to building higher incomes, creating decent jobs and strengthening resilience.
He pointed to examples from Chile, Malaysia and Morocco where deliberate policies had successfully linked SMEs to global supply chains in agribusiness, electronics and the auto industry.
He said Ghana’s SMEs faced well-known challenges including “lack of affordable finance, difficulty meeting export standards, fragmented logistics, and currency volatility,” adding that deliberate policy and institutional responses were required.
Turning to what banks could do differently, Dr Asiama urged them to deploy innovative lending models, make better use of risk-sharing schemes such as GIRSAL, deepen partnerships with development finance institutions, and embrace digital finance rails.
“Banks can also bundle financing with advisory services, supporting clients in certification, traceability, and carbon reporting,” he said.
On the part of the BoG, Dr Asiama outlined a number of measures being pursued to strengthen the financial system and create a conducive environment for SME financing.
These include ongoing financial sector reforms to boost bank capital and resilience, digital finance regulations to expand inclusive access, improved credit infrastructure, and the establishment of the Financial Stability Council.
He also mentioned the Bank’s push for green and transition finance to align SMEs with global sustainability standards, noting that “as sustainability becomes a prerequisite for global market access, we are promoting financial products that enable SMEs to adopt energy-efficient technologies and integrate into sustainable value chains.”
Touching on the foreign exchange market, Dr Asiama said the recent reforms were aimed at building a more transparent, rules-based system that supports trade and investment. “FX stability is not a luxury – it is a prerequisite for investment and competitiveness,” he emphasised.
With inflation declining, reserves strengthening and the cedi relatively stable, the Governor said the conditions were right for SMEs to grow with confidence.
He urged entrepreneurs to embrace formalisation, digitisation and compliance with global standards, which he described as “your passport to larger, more profitable markets.”
“If we succeed in enabling Ghanaian SMEs to step into global value chains, we will not only transform enterprises, but transform lives, create decent jobs, and build lasting prosperity,” he said.
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