As things begin to return to normal a year after the outbreak of the COVID-19 pandemic, stakeholders are hopeful of a quick and strong recovery in the various sectors of the economy.
Micro, Small and M-sized Enterprises (MSMEs) in Ghana face higher credit constraints as banks lend to a limited number of firms and prioritize large borrowers.
This is because many small firms are not profitable enough to repay loans at the current market rates and tenors.
This situation has even worsened after the emergence of the COVID-19 pandemic, where most economies and businesses have been crippled and are now finding their feet again.
But looking at the current economic situation in Ghana, is there hope of a strong recovery for small businesses in Ghana?
The Director of Business Banking at Absa Bank, Grace Anim-Yeboah, speaking with Bernard Avle on the Citi Business Festival, expressed confidence in the growth of Ghana’s MSME sector in the coming months.
She stated that, “A lot of challenges exist, but there are a lot of fantastic new opportunities coming up. I see people trying to do amazing things in various sectors and services. A year ago, all our conversations were around crisis and how to manage the crisis. I think we are out of that crisis. It’s a new normal, and it’s really about how we navigate the new normal. But there is opportunity in all of this.”
Ms. Anim-Yeboah further outlined what these small businesses must do before seeking various kinds of financial help to support their operations.
“The first and simplest thing is bookkeeping. Just get your records in good order, not only for the purposes of accessing credit from banks. It helps to track the health and viability of the business you are running. Get the right structures in place. Have a plan and begin to forecast how your business will look like in some years to come, and make decisions to drive your business.”
Many stakeholders have stressed the need for businesses to position themselves for expansion by being attractive.
In getting the right funds for their businesses, she also explained what these MSMEs can do to attract the right kind of finance.
“Formalise your operations. Bring yourself up to speed with the various regulatory stakeholders because it is part of preparing your business for growth. Invest in the right tools. Also, invest in your people. Find the right people on the journey with you in growing your business,” she stressed.
The Citi Business Festival is powered by Citi FM, Citi TV and citibusinessnews.com and proudly sponsored by Absa Bank and with support from IT Consortium and Ghana Investment Promotion Centre.