Accra, Ghana, June 5, 2019//-Start-Up SME Centres (SSC) Ghana Ltd with its Capacity and Knowledge Partners (Business Development Service Providers Association-BDSPA and Institute of Certified Management Consultants-ICMC-Ghana urged the government to take Eurobond to Finance Start-Ups and SMEs in the country.
According to a statement issued by Nelson Godfried Agyemang, CEO, Business Development Service Providers Association of Ghana (BDSPAG) said as Part of Preparation to Commemorate June as Start-Up and SME Month on the Theme: The Importance of Start-Ups and SMEs to the Economy of Ghana.
“We urge Ghana’s Multistakeholders, including Civil Society and NGOs, Development Partners, Private Sector, Trade Unions, Faith-based Organisations, Trade Associations, Students and Youth Organisations, Women’s Groups, Political Parties, vulnerable and excluded sectors of the population and Others to rally around this call for the Ghana Government to take bold decision to take Euro Bond to Finance Start-Ups and SMEs in Ghana because such a decision is good for the economy”.
This call urging All Arms of the Ghana Government to take this bold step to take Eurobond to finance Start-Ups and SMEs is because Start-Ups and SMEs usually referred to as the informal sector, constitute 70 % of Ghana’s economy (GSS, 2017), and therefore the biggest sector of the economy.
This Sector provides 85% of manufacturing employment in Ghana. The Sector also contributes 70% to Ghana’s GDP. Start-Ups and SMEs make up 80% of the private sector and account for 92% of businesses in Ghana (Abor & Quartey2010; Abor & Biekpe, 2006).
These reasons underscore the Importance of Start-Ups and SMEs to Ghana’s Economy and therefore we urge Government to go forward and take Euro Bond to finance Start-Ups and SMEs, and encourage Parliament to consider such a bill under a certificate of urgency if the Executive arm of Government brings it to Parliament because it is good for business and the economy.
There is Mass unemployment in the Country and the Public sector is only able to employ 14% of those who need jobs. The 86% of those needing employment fall on the informal sector of Start-Ups and SMEs.
“Start-Ups and SMEs have the greatest potential therefore to create jobs and reduce the mass youth employment in the Country, for which many Youth have set up their own businesses employing other youth.
These Start-Ups and SMEs urgently need financing. But such adequate and patient capital is neither available nor accessible from the public or private sectors to support such Start-Ups and SMEs”.
Government using euro bond, other sovereign and syndicated instruments or guarantees to secure adequate and patient Capital for the Start-Ups and SMEs is the only hope of the sector to secure finance and the surest way for the Youth of Ghana to get badly needed jobs.
This is also good for the Government to prioritise the most important sector which will benefit majority of citizens and voters.
This will reduce poverty, create wealth, ensure inclusive and shared growth for vulnerable and excluded population groups, reduce hardship and suffering of the people, enable equitable distribution of the National cake and provide social justice for all.
Therefore government should not be discouraged by those who argue that such debt will augment Ghana’s debt stock since this investment is good debt which will be applied to the potentially productive, profitable and sustainable sector of the economy.
He therefore urged the Government to hand over the Management and Disbursement of such finances directly to the private sector which is more capable of handling such finances, instead of managing it through public sector institutions which have so far not handled existing financing opportunities to the benefit of private sector and Start-Ups and SMEs in particular.
“This is because Public sector does not run good business nor do they know how business is run. The public and Civil service system of MDAs/MMDAs is not conducive to the running of business and therefore business is not their job”.
They only should provide the enabling legal, regulatory and policy environment for business to thrive as engine of growth and they need to stick to that mandate and allow Private Sector to run the business and pay their taxes.
“We welcome Government and All Citizens of Ghana to participate in the activities lined up in June to drive home the importance of Start-ups and SMEs to the Economy of Ghana and the urgent need to prioritise direct financing for the sector in our annual national, supplementary and special budgets and initiatives. Long Live Ghana! Long Live Start-Ups and SMEs in Ghana”.
African Eye Report
