The Minister of State in charge of Private Sector Development at the Presidency, Mr Rashid Pelpuo, has called on insurance companies to provide financial guarantee for small and medium enterprises (SMEs) to build their financial capacity.
He observed that the lack of funding for SMEs was a major challenge to the growth of the private sector, since SMEs constituted more than 90 per cent of all registered companies.
Mr Pelpuo made the call when he paid a visit to the offices of the National Insurance Company (NIC) in Accra on Monday.
“The strength and resilience of every economy are heavily dependent on the private sector,” he stressed, adding that there were no job opportunities “because we have a weak private sector”.
SME Fair 2016
Mr Pelpuo’s visit formed part of activities heralding the SME Fair scheduled for the Accra International Conference Centre (AICC) from April 25 – 27, 2016.
The fair, planned as a platform for SMEs to showcase their wares to financial companies, will be held on the theme: “SME financing in Ghana – Enhancing access and reducing cost”.
It will bring together stakeholders in the insurance, banking, petroleum and other sectors to interact and redefine a better business environment.
Better funding regime
Mr Pelpuo said the platform would afford the financial institutions, the government and SMEs the opportunity to deliberate on the best way to roll out a better funding regime for SMEs.
He called on insurance companies to align their operations to the changing trends in national development.
The Deputy Commissioner of the NIC, Mr Simon Nerro K. Davor, said insurance companies were key to ensuring funding for SMEs at a cheaper cost.