To reduce the financing gap for micro, small, and medium-sized enterprises (MSMEs),15 Ghanaian financial service providers have partnered with the Support to Private and Financial Sector (PFS) Programme to develop innovative financial products.

With funding from the German Cooperation, through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH this initiative aims to develop innovative financial products tailored to MSMEs’ needs.

A kick-off meeting in Accra, which was attended by insurance and pension regulators, partner financial service providers, and consultants provided a platform for stakeholders to engage on how to improve MSMEs’ access to financial services through this financial product development intervention. 

These financial products will include loans, savings, investment and bundled products. The primary target of this product development intervention is on MSMEs, with particular attention to businesses owned or run by women, youth, and persons with disabilities (PWDs).

Speaking at the kick-off meeting, Angela Armah from GIZ said, “GIZ is happy to support this because MSMEs are considered as efficient and prolific job creators, the seeds of big businesses and the fuel of national economic engines. We are here to discuss together how we bring need-based financial products to the doorstep of MSMEs.”

Despite employing approximately 85% of Ghana’s workforce, MSMEs face significant challenges in accessing finance.

Furthermore, many MSMEs lack a comprehensive understanding of the various financial products available and their requirements. This initiative aims to develop tailored financial solutions to enhance MSMEs’ access to finance, enabling them to grow their businesses and create more employment opportunities.

To reach this goal, the GIZ team is delighted to partner fifteen financial service providers and fifteen Trade Associations to jointly develop need-based financial products for MSMEs.

This effort underscores GIZ’s commitment to fostering economic growth and supporting the backbone of Ghana’s economy – its MSMEs.