High interest rates affecting SMEs - Minister

The Minister of State in-charge of Private Sector Development and PPP, Rashid Pelpuo has said high interest rates are negatively impacting the Small and Medium-scale Enterprises (SMEs) sector, and the economy as a whole.

Speaking at the launch of an SME Finance Fair in Accra Tuesday, he said access to capital by SMEs remains a key challenge if not addressed could harm the economy.

Mr. Pelpuo said because of the challenges faced by the SMEs, it's had a ripple effect on the country’s export performance, competitiveness, employment creation and revenue generation.

Mr. Pelpuo said the significance of SMEs to Ghana’s development could not be overemphasized as the sector accounts for over 90 per cent of registered businesses in the country.

He further stated that “over 40 percent of Ghana’s GDP is generated from SMEs and they therefore have an impact on economic growth, income and employment.”

The launch of the SME Finance Fair was to help find lasting solution to challenges faced by the sector and expose innovative financing mechanisms in the country currently.

The Fair will take place on 16 and 17 March 2016 at the Accra International Conference Centre (AICC) on the theme: ‘SME Financing in Ghana – Enhancing Access and Reducing Cost’.