Day: June 27, 2024

Micro, Small and Medium-sized Enterprises (MSMEs) account for 95% of all registered businesses in African countries and contribute an estimated 50% to the Gross Domestic Product of African economies.

From generating employment for about 90% of the African population, and significant revenue for these African economies, MSMEs serve as one of the key backbones of reducing poverty levels across the continent.

Despite the immense contributions of MSMEs to the Ghanaian and African economies, the fundamental issue to MSMEs remains access to adequate finance.

Furthermore, businesses under the MSME category are also susceptible to shocks such as global recessions, pandemics, and economic turndowns.

The challenges MSMEs face range from stiff competition from multinational companies to low levels of access to financial capital to expand their MSME activities.

This leads to diminished productivity, compromised quality, and in some cases, business closures. This has led to a great gap in the MSME sector and innovati
ve financing schemes are therefore essential to address the current gaps and barriers and foster a more conducive environment for businesses to thrive.

In addition, innovative financing schemes are necessary to MSMEs because they:

a. Improve the access to capital,

b. Create more avenues for financial inclusion,

c. Support innovation and entrepreneurship (especially as we enter the 4th industrial revolution)

In relation to this, the digital economy and limited access to digital markets and e-commerce platforms can also be said to be a challenge. Many MSMEs struggle to access digital marketplaces and e-commerce platforms where they can sell their products or services. This limitation is often due to barriers such as high transaction costs, lack of awareness about available platforms, and difficulties in meeting the technical requirements for online selling.

Without access to digital markets, MSMEs miss out on opportunities to reach broader customer bases and expand their businesses online. To overcome the
challenges associated with financing for MSMEs across Ghana and African countries, and in light of agreements such as the African Continental Free Trade Area (AfCFTA), various innovative financing schemes and techniques are being developed by experts in the field of finance to assist MSMEs in overcoming the challenges associated with capital accumulation for business expansion strategies.

Some innovative financing schemes are:

1. Partnership Building

One of the most recommended innovative financing schemes for MSMEs in Ghana is through the formation of partnerships with banks, financial institutions, and other multinational companies . UNDP Ghana in partnership with ABSA has been delivering such integrated partnership support to MSMEs especially youth and women-led businesses to build their resilience and sustain inclusive development efforts. On the side of partnering with relatively bigger and well-resourced companies, this ensures that the MSMEs are protected from absolving all the debts in times of eco
nomic recessions and economic shocks in the environment these MSMEs operate.

2. Crowdfunding Approach

Another innovative alternative financing scheme for MSMEs is through crowdfunding. The concept of crowdfunding for MSMEs involves the ability of the MSMEs to display their business ideas online using various online platforms towards fundraising. Soliciting from social media platforms such as Facebook, WhatsApp Business, and Instagram ensure enough capital for business expansion purposes and enables start-ups to validate their proof-of-concept through a reality check with a huge audience of individuals.

A successful crowdfunding campaign provides strong market validation, while failure imparts feedbacks and insights that are also beneficial to the business. It also creates financial leverage with other forms of financing, since a successful crowdfunding campaign helps to strengthen the company’s financial structure (e. g. in the case of equity crowdfunding) and high-lights that there is a potential market f
or its business. These are useful arguments to convince banks, Venture capital and angel investors when seeking additional funds. Look at it this way, donating money can help buy a blanket for one person in need, however, crowdfunding a small business can help it to produce affordable blankets for hundreds of people in need. This method can contribute to building a whole ecosystem of supporters and ambassadors, serving as a powerful leapfrog.

3. Cooperative Groups/Association Financing

Cooperative societies where members contribute significant amounts to be given out to members needing finance for business expansion and emergency situations is another innovative financial solution. This avenue remains one of the most innovative avenues due to the low-interest rates associated with the financing options for businesses as well as their flexible payment terms. The flexible term payments such as weekly payment options are usually associated with technical support that ensures that members’ contributions are rec
eived on a weekly basis to reduce the burden of debt accumulation.

4. Impact Investing Funds

Impact investing firms are funds that support specifically social or environmental outcomes in addition to generating for profit income. Funding from such firms towards MSMEs can promote long terms sustainable and greener businesses. These funds can therefore channel capital into MSMEs that are tackling pressing social and environmental issues towards longevity and sustainability.

Conclusion

The existence of MSMEs in Ghanaian and African economies cannot be ignored due to their significant contribution to the Gross Domestic Product (GDP) growth of various economies. For the Ghanaian Economy alone, the major challenge which is usually capital constraint has become an old age problem towards MSME growth and expansion. Alternative innovative financing schemes such as cooperative business financing strategies and crowdfunding for MSMEs have been identified as some of the lowest interest-bearing financing schemes for M
SME growth and resilience.

Utilizing such alternative financing schemes is crucial for accelerating the growth of MSMEs in Ghana and across the continent within the AfCFTA. This is also dependent on collaborative efforts from both the private and public sectors, which will in the long run, bolster economic integration and facilitate the transformation of Africa’s economic terrain thereby contributing towards sustainable development.

Source: Ghana News Agency

The Assin Apimanim Traditional Council, in collaboration with the Ministry of Tourism, Arts and Culture, Ghana Tourism Authority, Central Regional Coordinating Council and Assin South District Assembly will hold an event on Friday, July 5 to herald Emancipation Day celebration on Thursday, August 1.

The occasion is expected to whip up the interest of the public to join in the celebrations amidst highlighting the rich culture and traditions of the inhabitants of the area and Ghanaians in general, featuring traditional music, dance, and art.

The event will be held at the forecourt of Assin Appimanim Omanhene’s Palace in Assin Manso on the theme: ‘Our Heritage, Culture, and Education.’

Emancipation Day 2024 slated for August 1, is expected to encourage education and cultural interchange, and nurture a sense of community and solidarity among the populace.

Distinguished guests, including traditional leaders, government dignitaries, and cultural scholars, will deliver addresses.

The festivities will conclude w
ith captivating cultural displays and a grand durbar, ensuring a day of lasting memories.

The event on July 5 to be hosted by the Assin Apimanim Traditional Council and will educate and enlighten the public on the importance of preserving their cultural heritage and fostering cultural exchanges.

The Traditional Council through it programme seeks to instil in the younger generation appreciation for their shared history, embrace the present, and lay the foundation for a brighter future for posterity.

Source: Ghana News Agency

The Accra Circuit Court Three has granted a GHC40,000.00 bail with two sureties to an entrepreneur over an alleged Canadian Visa fraud.

The Court presided over by Mrs Susanna Eduful ordered that the sureties for Joel Bennet Akwei Appiah must prove that each earned not less than GHC1,000.00 a month.

She asked the prosecution to file and make available disclosures, including witness statement to the accused person.

Appiah has denied the offence.

He is to return to the Court on July 30, 2024.

Deputy Superintendent of Police (DSP) Evans Kesse, giving the facts, said Mr Justice Eli Valley, the complainant, was a Ghanaian residing at Baatsonaa whilst Appiah, the accused person, was an accountant residing at Tema.

He said on May 6, 2024, a complaint was lodged by the complainant that on October 23, 2023, he made payment of GHS35,000.00 at Jappex World Limited Travel and Tour Company’s bank account at CBG Baatsonaa branch.

He said the accused received the payment under the pretext of securing the complainant’s
younger brother, a Canadian VISA.

The prosecution said Appiah after receiving the money promised to finish the process on December 15, 2023, but failed to honour his promise.

The Court was told that the accused again promised to deliver the Visa on February 19, 2024, but failed again.

The complainant asked the accused to refund the money as promised and on May 6, 2024, a report was made at Baatsonaa Divisional CID leading to Appiah’s arrest, the Court heard.

DSP Kesse said he admitted the offence in his cautioned statement and after investigation, he was charged with the offence and put before court.

Source: Ghana News Agency

Mr Steven Blewett, the Chief Executive Officer (CEO) of MTN Ghana, has visited Asantehene, Otumfuo Osei Tutu II at the Manhyia Palace as he begins his duty in Ghana.

Accompanied by other company officials, the new CEO told the King that he was at the Palace to introduce himself and share his vision for the company.

‘As someone who values the culture of a people, I deemed it right to pay homage to the Asantehene as I begin my duty as CEO and to learn first-hand concerns he has so together with my team we can work to address same and provide better services to the people of Ghana and Asanteman’, the CEO stated.

He pledged his commitment to exploring all avenues to make the services MTN provides to the people of Ghana, particularly Asanteman seamless.

Mr Blewett commended the Asantehene for welcoming the team and for supporting MTN Ghana all these years.

He noted that the relationship between the Asantehene and MTN Ghana had been mutually beneficial and promised to work to strengthen the bond.

The company,
he said, was working to ensure data, network and other services were improved for the people of Ashanti to enjoy quality service.

‘My vision is to ensure that our operations and services continue to serve the people of Ghana including Asanteman very well so that we can keep the partnership we have with the people’, he noted.

Welcoming the MTN Ghana team to the Manhyia Palace, Otumfuo Osei Tutu II commended the company for maintaining a good working relationship with the people of Asanteman and the Palace.

He noted that it was not surprising that MTN was the preferred network for people in the region and the country at large.

The Asantehene asked the new CEO to prioritise the training of staff and many others whose services could help improve the quality of service for the people.

‘I am not surprised that you command over 70 to 80% of the market share in the telecommunications industry and I pray that you work to ensure your services are of the highest quality and helpful for the people of Ghana and Asant
eman in particular’, Asantehene intimated.

Source: Ghana News Agency

Ms Emelia Ofori Agyemang, a Midwife and Facility Head at Bediako CHPS Compound has urged women to change their sanitary pads periodically to prevent vaginal infections.

She stated that changing the sanitary pad during the menstrual cycle promoted good menstrual hygiene.

Ms Agyemang advised that sanitary pads should be changed at least three times a day, depending on how heavy or light the flow was, and that the intake of water should be increased during menstruation.

Speaking with the Ghana News Agency in an interview, she recommended that females washed their hands thoroughly with clean running water and soap before fixing and disposing of sanitary pads to prevent bacterial infections.

She subsequently stated that wearing cotton underwear or fabrics helped to absorb heat and bad odours while washing and drying underwear in direct sunlight and ironing should be encouraged as good personal hygiene to help kill organisms leading to vaginal infections.

She reiterated that clean water should be used to wash
the vagina, adding that they should also flush, disinfect, and wipe the toilet seat before using it.

‘Eat more vegetables and fruits to help build the immune system,’ she advised.

The midwife further noted that cleaning the vagina with clean tissue after urination aids in reducing the growth of bacteria to prevent candidiasis and other vaginal infections.

Also, ‘avoid self-medication when you feel vaginal itchiness because not every itchy thing leads to candidiasis,’ she reiterated.

Ms. Agyemang advised women to immediately seek medical treatment for candidiasis when they have symptoms including an itchy or burning sensation during urination, white or thick vaginal discharge with the consistency of cottage cheese, redness, and swelling of the vulva, among other symptoms.

Source: Ghana News Agency

Market fires in Ghana have had devastating impact on women who operate small and medium enterprises usually trading in the markets.

Many lose their livelihoods and income running in millions of cedis, a 2022 data from the Ghana National Fire service, put losses due to fire at more than 64 million cedis in about 967 fire outbreaks alone.

This affected more than 2,000 traders in the year comprising of market fires, and notable to mention are the Kejetia market in Kumasi, Kantamanto, Odawna, Madina markets in Accra and Juaben Serwa market in Koforidua.

Meanwhile, most of these women in the informal sector rely on credits from financial institutions, family, and friends, unfortunately, with no form of insurance they are left vulnerable to fire outbreaks and any other disasters.

In July 2019, Ama Grace (not real name) a 38-year-old trader invested GhS50,000 cedis into her trading business in anticipation of Christmas sales and was looking forward to reaping the returns and pay back the loan facility of GhS40,0
00 cedis she took from a finance company.

The investment included infrastructure where she moved from a metal container to a rented shop nearby, did some interior upgrade such as painting and tiling, she also restocked and added on other items just to attract a lot of clients.

Each month she was expected to pay an amount of GhS1,500 for the next three years to defray the bank loan, like every businessperson, Ama hoped to expand and upgrade her business with these interventions and breakthrough, but that was not her reality.

In October same year, tragedy struck, the Koforidua central market where Ama’s new shop was located was hit by a fire outbreak, her shop was among the over 60 shops gutted by the fire and burnt beyond recognition, the only items she could salvage were the metal beams supporting the frontage of the shop and the broken tiles, all her investments gone down the drain.

Unfortunately, Ama has no insurance package to restore her business back, just like the over 200 affected traders mostly wo
men, the benevolence of government, philanthropists and family, and friends now becomes the only source of hope for sustenance.

Ama is shattered, all her dreams have come to naught, how to pay back the loan, get a source of livelihood are pains she has to bear with, until such time that luck comes back her way, the reality of insuring her shop, which she ignored and thought was too expensive has dawned on her.

‘I remember when I moved into my new shop some insurance agents came to me to sensitise on the need to have an insurance policy to cover my investments in the event of any disaster, but I was not interested because I thought it was too expensive and not necessary.’ She sadly noted.

Ama Grace is not alone here, there are hundreds of traders who have lost their livelihoods due to market fires and the fact that they had nothing to fall on after the disaster had rendered them in a state of poverty and despair only clinging on the hope of ‘Nyame bekyere’ to wit God will provide, the typical mentality of t
he Ghanaian.

‘I lost my shop containing wares more than GhS20,000 cedis in the Odawna market fire and since then have not been able to recover, paying debts and finding another place has not been easy for me’ Aunty Ama, a victim of the Odawna fire outbreak last year who recounted her ordeal to the GNA said she thought insurance was for the rich and big companies.

The notion has always been that insurance policies are for the affluent, rich, and big businesses who have huge infrastructure and not for small traders in containers or stalls at congested markets and therefore it is difficult to find any trader insuring his or her wares at Makola, Odawna, Madina or any wayside markets.

Meanwhile, GNA checks at the National Insurance Commission (NIC) showed that there were several insurance packages specifically designed to meet the demands and pockets of traders in the markets to mitigate impact of market fires on women, providing the financial protection against losses as well as help to recover from such disas
ters and rebuild their businesses.

They include the Ghana Re Insurance Company’s ‘Market Fire Insurance Policy’ the SIC ‘Traders Insurance Policy and Star Assurance Company’s ‘Small Business Insurance Policy, these policies typically cover losses due to fire, burglary, and other risks, it also provides additional benefits such as business interruption coverage and liability insurance.

The reality is that many women in Ghana’s informal sector may not have access to these insurance policies due to obvious reasons, lack of awareness, high premiums and limited financial resources and the general mentality that insurance policies were for big businesses.

Mr Mawuli Zogbenu, Public Relations Officer of the NIC in an interview, said his outfit and the Ghana National Fire Service had embarked on a nationwide sensitisation drive on the importance of insurance policies and the benefits in the event of any disaster or crisis to cushion victims.

However, he agreed that there was the need for intensive and consistent s
ensitization of market women and small businesses including dressmaking shops, hair salons and other business establishments to understand the importance of insurance policies as an investment to be recouped in times of disasters.

In as much as the sensitization drive is good move, the need for the NIC, the Ghana National Fire Service and the respective local assemblies to have a concerted and coordinated efforts to ensure that traders and small businesses obtained an insurance policy as pre-requisite to granting of the business operating certificates or permits was imperative.

Source: Ghana News Agency