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Ghana\u2019s ability to take advantage of the Africa Continental Free Trade Area (AfCFTA) has been dealt a major blow after a baseline study found that only 5 percent of the country\u2019s Micro, Small and Medium Enterprises (MSMEs) export their products.<\/p>\n
This was after surveying 84,592 MSMEs in 245 out 261 districts in Ghana\u2019s 16 administrative regions with most of the surveyed firms from the Ashanti (23,123, equivalent to 27.3 percent and Greater Accra (18,856, representing 22.3 percent) respectively.<\/p>\n
The survey found that only 4,177 MSMEs from the 84,592 \u2013 representing a paltry 5 percent of the enterprises \u2013 export their products and\/or services.<\/p>\n
According to the survey- which was sanctioned by the Ghana Enterprises Agency (GEA) under the GEA-Mastercard Foundation\u2019s Young Africa Works Project and conducted by Palladium Group Ghana Limited \u2013 of the significant proportion of the MSMEs in all the 16 regions, 86 percent are operating in the informal sector; with the Western North Region recording the least.<\/p>\n
The study further found that a significant majority (87 percent) of the enterprises are micro-sized. Again, the majority of micro- (33 percent), small (35 percent) and medium-sized (24 percent) enterprises operate within the handicraft sector; while majority of large firms are in the agro-processing, textiles and garments sectors.<\/p>\n
The baseline study of the Ghanaian MSME landscape indicates that Ghana\u2019s MSME sector shows very minimal growth spurts \u2013 as firms start at a particular size and remain so throughout their lifetime, indicating that not much changes over time, Professor Ebo Turkson, an economist at the University of Ghana, explained this when he presented the findings.<\/p>\n
\u201cThese findings generally suggest that although Ghana has a very vibrant MSME sector, a large majority are micro-sized \u2013 not innovative, highly informal, constrained by access to credit and do not grow in higher size thresholds. If policy can enhance the productivity of MSMEs through innovative activities, it will encourage their participation in the export markets and partly address the issue of access to credit,\u201d he stated.<\/p>\n
Chief Executive Officer (CEO) of the GEA, Kosi Yankey-Ayeh, welcomed the survey\u2019s findings, saying in an interview with the Business and Financial Times (B&FT) that the baseline study has given the agency a better picture of the country\u2019s MSME sector; and that will lead to the creation of bespoke interventions which ensure rapid scale-up with a focus on heightening exportation into other markets.<\/p>\n
\u201cIt shows potential, it shows opportunity; and this is a great time for us to enhance more people to export\u2026build their capacity to export and take advantage of the continental free trade area,\u201d she stated.<\/p>\n
Source: B&FT<\/span><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Featured Video\n<\/p>\n\n
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