BoG charges financial institutions to support SMEs
The regulator of the financial sector, the Bank of Ghana (BoG), has asked financial institutions, including commercial banks and financial technology (fintech) companies, to support Small and Medium-sized Enterprises (SMEs) in the country.
According to the central bank, “the critical role of SMEs in the Ghanaian economy is incontrovertible,” therefore, there is the need for banks and other financial service providers, including fintechs, to support them to thrive.
As such, BoG has asked the financial institutions to develop tailor-made financing systems and other services to support the operations of SMEs.
When this is done, the First Deputy Governor of BoG, Dr Maxwell Opoku-Afari, believes it would make the SMEs contribute “meaningfully to the national development agenda.”
He said this at the Business Sans Borders (BSB) stakeholder engagement held on Wednesday, August 18, in Accra.
The BSB is a project that seeks to develop a network of digital platforms to serve as a global public infrastructure to simplify and enhance trade across national boundaries.
Developed by the Monetary Authority of Singapore (MAS) and Infocomm Media Development Authority (IMDA), the initiative is being implemented in Ghana in partnership with BoG and the Ministry of Finance.
Speaking at the programme, Dr Opoku-Afari underscored that the BSB, through its Financial Trust Corridor, would be a game-changer in efforts to drive financial sector activity and inclusive SME development under the regulatory watch of the central bank.
He also remarked that the project would offer rapid growth to commercial banks and fintechs as they would have new clients while leveraging data for innovation.
In addition, he said the project would offer a sandbox environment to accelerate the testing and delivery of new services for SMEs, and urged banks and other financial service providers to create platforms to support SMEs growth.
Regarding the partnership, Dr Opoku-Afari explained that with the stack of foundational infrastructure currently in place, Ghana is positioned with the active collaboration of Singapore to release the potential of SMEs through the BSB project.
“Of course, this can only be successful with the active support of all stakeholders. Your commitment to the project has been proclaimed loud and clear at this forum. I therefore have no doubt that we are together in this endeavour,” he stated.
He further stated that for traders in Ghana and Singapore, BSB would be a one-stop meta-hub to source for trade and services online while streamlining access to better domestic and cross-border business opportunities.
It would offer an effective platform towards deepening trade and bilateral cooperation between the Ghana and Singapore in the scale that has never been seen.
He assured stakeholders of the central bank’s commitment to seeing to the successful implementation of the project.
With that said, the deputy BoG governor asked stakeholders in the financial sector to “roll up our sleeves and work towards implementation of the various components of the project.”
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The governor, Dr Ernest Addison, added that the bank has established a strong foundation to connect SMEs to global digital payment platforms to enable them to benefit from international trade opportunities.
This is through the development of a network of digital platforms to serve as a global public infrastructure to facilitate cross-border trade among Ghanaian SMEs and the other business across the world.
The move forms part of the Central Bank and the government’s drive to transform the payment system in the economy from physical cash to digital platforms through the cashlite agenda.
“With the full implementation of the BSB initiative, Ghanaian SMEs will be able to access diversified trade opportunities as well as critical, quality ecosystem facilities such as finance, accounting, and business referrals with Singapore,” Dr Addison stated.