The Minister for Trade and Industry, Alhaji Kobina Tahir Hammond, has stated that the economy of Ghana is being sustained by Micro, Small, Medium Enterprises (MSMEs).
According to him, that sector constitutes about 90% of businesses, 80% of workforce and 70% of the Gross Domestic Product.
He said “In Ghana, MSMEs are the lifeblood of our economy,” adding that they constitute about 90% of businesses, 80% of the workforce and 70% of GDP.”
The Minister for Trade and Industry, who doubles as the Member of Parliament for Adansi/Asokwa, Alhaji K.T. Hammond, said this on Thursday, June 27, 2024 when given a keynote address at the celebration of International MSMEs Day.
Speaking to journalists on the sidelines of the event, the affable minister indicated that the government was committed to protecting and supporting the MSMEs in Ghana, considering their worth.
He said that through strategic initiatives and programmes, Ghana aims to enhance the contribution and performance of the MSME sector, while forging a path towards a future defined by innovation, growth and opportunity.
CLASSIFICATION
The day also marked the launch of the Legislative Instrument (L.I. 2470), classifying Micro, Small and Medium Enterprises (MSMEs) in Ghana.
The L.I. 2470 is broadly titled Ghana Enterprises Agency (Classification of Micro, Small and Medium Enterprises) Regulations, 2023.
It was gazetted on October 31, 2023 and came into force on November 30, 2023.
The Minister for Trade and Industry, supported by the Chief Executive Officer (CEO) of the Ghana Enterprises Agency (GEA), Kosi Yankey Ayeh, launched the regulation.
PURPOSE
The purpose of the regulation is to provide criteria for the classification of MSMEs in the country.
It is also to provide a national definition for research activities and data collection relating to MSMEs, and it is also to facilitate the compilation of a national register of MSMEs.
The regulations apply to an enterprise that operates in Ghana and falls within the thresholds specified in the regulations.
CRITERIA
The GEA shall classify an enterprise as a micro enterprise if that enterprise has permanent employees of six up to 30 persons, and turnover of more than GH¢150,000 up to GH¢6 million or a fixed asset value of more than GH¢150,000 up to GH¢6 million.
Further, the GEA shall classify an enterprise as a medium enterprise if that enterprise has a permanent employee of 31 up to 100 and turnover of more than GH¢6 million up to GH¢8 million, or a fixed asset value of more than GH¢6 million up to GH¢8 million.
According to L.I. 2470, where the employment size, turnover, or fixed asset value of an enterprise exceeds the classification provided for a medium enterprise, the enterprise is considered a large enterprise.
ATTRACT INVESTOR
Giving a keynote address, the Minister for Trade and Industry, Alhaji Kobina Tahir Hammond, indicated that this regulation will create a new, transparent and objective classification system for MSMEs.
He said that it will attract local and international investors by providing clear criteria, improve access to finance for MSMEs with a standardised definition, facilitate better data collection and analysis for informed policy decisions and encourage MSMEs to invest in competitiveness for sustainable growth.
He added that “by implementing these regulations, we aim to create a more conducive environment for MSMEs to thrive, ensuring that they continue to contribute to Ghana’s industrial transformation and economic growth.”
COMMENDATION
According to the Minister, the GEA had accomplished one of its functions under Section 3, subsection (C) of the GEA Act, through the enactment of the regulation.
Section 3 mandates the GEA to determine the criteria for the classification of MSMEs to promote their development and encourage their participation in industrial transformation.
The Minister commended the GEA and, in particular, the CEO, Kosi Yankey-Ayeh, for the tremendous work being done at the agency to support the vulnerable and MSMEs.
He noted that the government has, since 2017, been supporting women, youth and persons who are physically challenged through the sector, providing them with essential opportunities and sustaining their livelihoods, as well as those of their families.
“On this note, I particularly commend Mrs. Kosi Yankey-Ayeh, CEO of GEA, for her dedication in helping to address these challenges,” Alhaji KT Hammond said.
VITAL ROLE
On her part, the CEO of GEA, Kosi Yankeh-Ayeh, said that the theme for this year’s International MSMEs celebration is “MSMEs and the SDGs: Leveraging the Power and Resilience of Micro, Small and Medium Enterprises to Accelerate Sustainable Development and Eradicate Poverty in Times of Multiple Crises,” which encapsulates the vital role that MSMEs play in the collective journey towards sustainable development and poverty eradication.
She described MSMEs as the heartbeat of the Ghanaian economy and central to efforts to achieve the SDGs.
“At GEA, we recognise the critical role MSMEs play in driving economic growth, creating
employment and reducing poverty. We also acknowledge the challenges they face,” she remarked.
SUPPORT
According to the CEO, her agency has been unwavering in its commitment to develop and support the MSME sector in Ghana to grow and contribute meaningfully to the growth of the national economy.
She said they have supported over 1.3 million businesses and potential entrepreneurs, established over 56,000 new businesses and created over 100,000 new jobs from 2017 to 2023, among others.
Touching on the new Ghana Enterprises Agency (Classification of Micro Small and Medium Enterprises) Regulation, 2023 in an interview with the media, she indicated that it would fortify MSMEs to boldly seek financial support.
She remarked that the classification will help her agency deliver on its mandate more effectively, improve coordination among government institutions and development partners
and the financial sector, and enable MSMEs to access targeted support and resources.
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