Ghana’s GDP largely contributed by MSMEs
According to data available to the Deutsche Gesellschaft für Internationale Zusammenarbeit or German Corporation for International Cooperation (GIZ), 70 per cent of Ghana’s gross domestic product (GDP) is provided by micro, small & medium enterprises (MSMEs) which are, at the same time, not adequately supported by government.
This was revealed in a presentation during the 2024 Regional Network Conference for Enterprise Development & Employment Promotion.
Themed Sustainable Solution for Enterprise Development & Employment Promotion: The Role of the Union of Stakeholders, Accra’s edition took place at the University of Professional Studies-Accra (UPSA) across two days: November 12 and 13.
Making a presentation on day one, Stephanie Simon, Team Lead at the GIZ, under the support of the Private and Financial Sector (GIZ); a consultant, private sector enthusiast, and a long-term resident in Ghana, who noted she had spent more of her professional life in Ghana than anywhere else, underlined three figures – 90, 80, 70 – to drive home the profound significance of MSMEs to the Ghanaian economy.
First, she defined MSMEs broadly as companies with “a lot less than 50 employees”.
Echoing GIZ Country Director Dr Dirk Aßmann’s earlier thoughts, Ms Simon said, “90 per cent of all registered companies in Ghana are MSMEs, and they offer a total of 80 per cent of the total employment in Ghana.”
“The MSMEs account for 70 per cent of the country’s GDP,” she freshly indicated.
After explaining the 90 per cent earlier mentioned meant there were 1.7 million MSMEs in Ghana, she introduced three more figures – 15, 10, and five.
Expatiating, Stephanie Simon said there were, per her personal but informed estimation, “15 government agencies regulating MSMEs” in the country.
She underlined an entrepreneur needed 10 unique permits to run a business.
Five, she added, was the number of employees per MSMEs on average, meaning 1.7 million businesses, on average were employing 8.5 million people.
Noting MSMEs were “mostly informal,” and covered everything from and in between “catering to FinTech,” she came to some of the challenges of “everyday business life” for MSMEs.
They included: market access and clients; access to finance and affordability of finance; infrastructure (roads, electricity, water, internet, etc); standards, sustainability and compliance; access to inputs and raw materials; access to technology, data and innovation; access to skilled labour and training; understanding of regulatory framework.
Stephanie Simon zoomed in on data being “a powerful tool for companies to access and discuss” all the things – some aforementioned – necessary for their establishment, productive operation and sustainability.
She bemoaned Ghana’s agriculture sector was “kind of dying” with the ever-present challenge of attracting young people to replenish the workforce which is usually seniors of local pension age.
Above all, the GIZ official greatly advocated the sustained support of macro-level organisations, alias government and related agencies, for MSMEs.
