- The Ghana Chamber of Commerce (GCC) has stated that the GHC600 million earmarked for SMEs is woefully inadequate
- The GCC added that there could be serious trouble ahead as a result of the disruptions in the business conditions caused by COVID-19
- GCC's call follows a similar one by the Ghana Union of Traders Association (GUTA)
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The Ghana Chamber of Commerce (GCC) has called on the government to take a second look at the GHC600 million soft loan package allotted for Small and Medium Scale Enterprises (SMEs) in Ghana.
According to the GCC, the amount is woefully inadequate to support all SMEs in Ghana who may require help.
The call follows a similar one by the Ghana Union of Traders Association (GUTA) who say the amount may not cater for every SME in need.
READ ALSO: COVID-19: Government announces a recovery plan for the economy
As part of a webinar series, the Chamber’s president, Dr Nana Appiagyei Dankawoso I, warned that disruptions in the growth of SMEs amid the spread of COVID-19 will spell doom for the economy.
Per a report by myjoyonline.com, he indicated that “on average, the estimated financial cost of the pandemic on businesses differs and increases with firm sizes: micro-enterprise (GH¢22,500); small enterprise (GH¢50,000); medium enterprise (GH¢500,000); and large enterprise (GH¢600,000). It thus suggests that the government’s stimulus package of GHS600 million to be shared among about 200,000 SMEs is woefully inadequate (average of GHS 3,000) even for the micro-enterprise (GH¢22,500). Also, the delay in the disbursement of the stimulus package is further worsening the plight of SMEs.”
Dr Nana Appiagyei Dankawoso I went on to say that the GCC would urge the government and financial industry players to reveal the modalities required to enable large enterprises to access the GHS3 billion syndicated loans.
YEN.com.gh earlier reported that President Akufo-Addo revealed that small and medium scale businesses in Ghana would benefit from a GHC600 million soft loan package.
According to him, the move is to protect such businesses from the economic impact of the coronavirus.
As part of a nationwide address on Sunday, April 5, 2020, he explained that the plan is to ensure that Ghanaian businesses are still functioning even though industries are affected by the pandemic.
READ ALSO: Ghana's economy could not withstand more than 3 weeks of partial lockdown
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