The Governor of the Bank of Ghana (BoG), Dr. Johnson P. Asiama, has urged commercial banks to rethink their approach to financing small and medium-sized enterprises (SMEs) by moving beyond traditional collateral-based lending and embracing more innovative models to support their integration into global value chains.
Delivering the keynote address at a workshop on “Supporting SMEs to Sustainable Global Value Chains” in Accra, organized by the Ghana Association of Banks (GAB) in collaboration with Afreximbank, the African Development Bank (AfDB), and the Trade and Development Bank (TDB), Dr. Asiama emphasized that SMEs are the backbone of Ghana’s economy but remain underrepresented in international trade.
He noted that financing remains the “oxygen of enterprise,” yet many SMEs face barriers due to lack of collateral, high credit costs, and stringent lending conditions.
He called on banks to explore alternatives such as cash-flow lending, purchase-order financing, and supply-chain finance, which have proven successful in Asia and Latin America.
“Many of our SMEs do not have fixed assets, but their participation in structured value chains creates opportunities to leverage anchor buyers’ creditworthiness. Banks must innovate to tap into these models and unlock the growth potential of SMEs,” he said.
Dr. Asiama also underscored the importance of risk-sharing mechanisms and partnerships with development finance institutions to ease SME financing.
He cited Rwanda’s successful use of partial credit guarantees and encouraged Ghanaian banks to utilize tools like the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL).
On broader reforms, the Governor highlighted measures the central bank has implemented to strengthen the financial sector, promote digital finance, and stabilize the foreign exchange market.
These include enhanced interbank FX trading, tighter reporting requirements, and policies aimed at curbing speculative demand. According to him, the reforms are designed to create a transparent and predictable FX environment for SMEs.
“Foreign exchange stability is not a luxury – it is a prerequisite for investment and competitiveness. Our reforms aim to provide SMEs with fairer, more predictable access to FX, enabling them to compete regionally and globally,” he stressed.
He further noted that global trade increasingly demands compliance with sustainability and traceability standards, making it imperative for Ghanaian SMEs to embrace green and ethical practices.
The BoG, he added, is encouraging banks to align with climate-conscious finance through green loans, credit guarantees, and tailored advisory services.
The workshop, held at the Mövenpick Ambassador Hotel in Accra from September 11–12, brought together policymakers, development partners, financial institutions, and private sector leaders to explore ways of strengthening SMEs’ capacity to enter regional and global value chains.
Dr. Asiama concluded with a call to action: “Our SMEs are not risky outliers; they are the future growth drivers of your portfolios. If we succeed in enabling them to step into global value chains, we will not only transform enterprises but also transform lives, create jobs, and build lasting prosperity.”
Source: Starrfm.com.gh
