Ghana’s financial and policy leaders
agree that closing the country’s estimated $5 billion SME financing gap requires
stronger coordination between traditional banks, private credit investors,
blended finance providers, and SMEs themselves.
This was the central takeaway from a
high-level roundtable convened by CrossBoundary Advisory, in partnership with
the Mastercard Foundation through BRIDGE-in Agriculture, which brought together
over 50 leaders from finance, enterprise, and government to examine how Ghana
can mobilize domestic capital at scale.
SMEs
make up 92% of all business enterprises in Ghana, contribute 60–70% of the
country’s GDP, and account for 70–80% of national employment. Yet these vital
businesses have limited access to capital, facing a combined $5 billion
financing gap that severely constrains their growth and job creation potential.
While
traditional banks provide some support, structural gaps persist in the
financial ecosystem. These gaps range from high interest rates and collateral
requirements to limited understanding of sector-specific business models. The
roundtable assessed these challenges in detail, examining how Ghana can position
key players to attract more complex capital structures and adapt financing
models to local business realities.
The
experts at the table have shaped the country’s financial landscape, designed
innovative financing instruments, and championed regulatory reforms that enable
greater private sector participation in economic development. Moderated by Fanta
Conde, Partner at CrossBoundary Advisory, the session featured:
·
Pearl
Nkrumah, Managing Director, Access Bank
·
Charlotte
Amanquah, Regional Head of Commercial Banking for Anglophone West
Africa, Ecobank
·
Dr.
Ishmael Dodoo, Head of Innovative Finance,
Partnership & Markets, 24-Hour Economy Secretariat
·
Kwadwo
Adjei-Barwuah, Head of Investments, Growth
Investment Partners
·
Ashwin
Ravichandran, Portfolio Advisor, MEST Africa
·
Alfred
Otoo, Project Director, Precise AgroProcessing
·
Samuel
Yeboah, Chief Operating Officer, GIRSAL
Enterprise
Perspectives on Financing Realities
Entrepreneurs
shared firsthand challenges in accessing and deploying capital. Alfred Otoo described
his experience in the cassava processing value chain, where the journey from
research and development to commercial-scale planting spans several years and
requires substantial working capital.
"SMEs
like ours struggle to access working capital because lenders cite lack of
revenue as a concern," Otoo said. "But this is impractical in an
industry that requires patience. We need models that work with our
realities—receivables-backed lending that unlocks cash to operate."
Pearl
Nkrumah emphasized the need for ecosystem-wide collaboration, calling for SMEs
to engage with capacity-building programs tailored by banks.
Building
Financial Infrastructure
A
critical priority discussed was establishing a central trusted credit scoring
system to help banks better profile and assess SMEs. The collaborative
infrastructure would standardize risk evaluation and reduce information
asymmetries that currently constrain lending decisions.
“We
don’t have a lending problem in this country—the problem is that data is siloed,”
Pearl Nkrumah said. “Banks and telcos should come together to establish a
central scoring system that we can all trust to reduce the risk that we face.”
Unlocking Pension Funds and “Patient” Capital
Kwadwo-Adjei
Barwuah highlighted the untapped potential of pension funds and their position
to accommodate the long-term needs of most SMEs. “The pension funds should be
the readiest, given the amount of capital they have access to and their
investment horizons. Some SMEs need one- or two-year facilities, but many need
five, six, seven years, and that matches with the investment horizons of these
pension funds.”
The
discussion explored how these players can complement one another, with
traditional banks serving established businesses while private credit investors
reach market segments and sectors where conventional institutions face
constraints, whether regulatory, risk perception, or operational capacity. Pearl
Nkrumah emphasized collaboration with micro-lending institutions in bridging
the financing gap. “Currently, there are micro-lending agencies that, with
backing from banks, will be able to address the needs of the youth and the
people in rural areas.”
Using
National Strategy to Attract Long-Term Domestic Institutional Capital into SMEs
at Scale
Dr.
Dodoo revealed that the government is working with the Bank of Ghana, GIRSAL,
and some banks to test innovative financing policies and mechanisms to unlock
capital for SMEs at scale. He mentioned that the government’s priority is to
de-risk the lending environment and create opportunities for more capital flows
into the Country.
“We
are creating an SME facility with affordable, patient capital for SMEs in
partnership with banks,” he said. “As government, we should bring in that
capital through our credibility, then on-lend through the banks in ways that
meet SME realities.”
According
to him, the government has so far mobilized $500 million.
The Way Forward
The
roundtable speakers outlined a comprehensive roadmap to close Ghana’s SME
financing gap, centered on building financial infrastructure, enabling policy
reforms, and reducing sector-specific risks.
A
unanimous priority was establishing a central, trusted credit-scoring system
that banks can jointly create and access. They emphasized the use of emerging
technologies to harmonize data collection across institutions. This
infrastructure would leverage data points from outside traditional banking to
build comprehensive credit profiles that reduce information lapses currently
constraining lending decisions.
Another
key point of agreement was the development of financing models that assess cashflows
at different business stages. Critical policy changes include enabling pension
funds to deploy more capital into SME financing and implementing more flexible
provisioning requirements for banks. Speakers also emphasized closer
collaboration with the Bank of Ghana on base rate management to make lending
more affordable.
For
agriculture and key sectors, the speakers emphasized crediting standardized
production models and value chain “corridors”, leveraging technology to
streamline operations from farm to market, and ensuring clear information flow
to farmers and last-mile actors.
These
priorities rest on blended finance to catalyze affordable lending,
collaborative platforms to reduce costs, and ongoing technical assistance for
both banks and SMEs—all while protecting businesses from foreign exchange
risks.
The
speakers stressed the importance of collaborative platforms that minimize costs
of origination, customer onboarding, and monitoring. This includes partnerships
among banks, fintech providers, business development service providers, and
government agencies to build shared infrastructure and reduce the operational
burden of reaching SMEs.
The roundtable reached a consensus that thoughtful design, strong partnerships, and coordinated action across the ecosystem can fundamentally transform SME access to capital in Ghana
About
BRIDGE-in Agriculture
BRIDGE-in Agriculture is a five-year Mastercard Foundation-program, in
partnership with CrossBoundary Advisory and a consortium of banks (Access Bank,
Ecobank, Fidelity Bank, First National Bank, Stanbic and Zenith Bank), business
developments services providers (Africa Skills Hub, Mind Builder Africa), and a
technology platform (Peswa). BRIDGE-in Agriculture aims to facilitate access to
affordable capital and capacity building for SMEs operating in agriculture and
adjacent sectors. The Mastercard Foundation is allocating $87m to commercial
banks to extend loans to AgriSMEs at a maximum interest rate of 7%. Through
these loans and capacity-building activities, the program will create dignified
and fulfilling employment opportunities for 400,000 Ghanaian youth, with 70% of
them being women. For more information visit: www.bridgeinagric.com
About CrossBoundary Advisory
CrossBoundary Group is a mission driven investment and advisory firm dedicated
to unlocking the power of capital for sustainable growth and strong returns in
underserved markets. CrossBoundary Advisory has advised on over US$12 billion
transactions in underserved markets across a broad range of impactful sectors,
including agriculture, health, education, manufacturing, ICT, infrastructure,
and clean power. CrossBoundary Advisory is a trusted advisor for governments,
development finance institutions, private equity firms, Fortune 500 companies,
and research institutions, helping them unlock mutually beneficial
transactions. The firm has over 200+ professional staff and offices in Accra,
Amman, Bamako, Bangkok, Beirut, Bogota, Chișinău,
Dakar, Dubai, Ebene, Erbil, Johannesburg, Kampala, Lagos, London, Nairobi, San
Salvador, Tunis, New York City, and Washington D.C. For additional information,
visit www.crossboundary.com.
About the Mastercard Foundation
The Mastercard Foundation is a registered Canadian charity and one of the
largest foundations in the world. It works with visionary organizations to
advance education and financial inclusion to enable young people in Africa and
Indigenous youth in Canada to access dignified and fulfilling work. Its Young
Africa Works strategy aims to enable 30 million young people to access
dignified and fulfilling work by 2030, while its EleV strategy will support
100,000 Indigenous youth in Canada to complete their education and transition
to meaningful work aligned with their traditions, values, and aspirations.
Established in 2006 through the generosity of Mastercard when it became a
public company, the Foundation is an independent organization. Its policies,
operations, and program decisions are determined by its Board of Directors and
Leadership team. For more information on the Foundation, please visit www.mastercardfdn.org.
0 Comments