Day: June 27, 2024

The development of a new, standardised curriculum and an instructor’s manual for heavy goods drivers will raise their level of proficiency and improve road safety, Mr Kwaku Ofori Asiamah, Minister of Transport, has said.

‘Well-trained drivers are not only better equipped to perform their duties, but are also more confident and motivated, contributing to higher job satisfaction and overall industry standards,’ he said.

This was in a speech read on behalf of the Minister at the launch of the Standardised Curriculum and Manuals for Heavy Goods Vehicle Drivers in Accra.

The Curriculum and manual were developed by Transaid, a UK-based NGO and the Driver and Vehicle Licensing Authority (DVLA).

The manual is a comprehensive tool designed to enhance safety, streamline operations, and elevate professionalism within the industry.

The Minister said the documents would serve as a cornerstone in the country’s efforts to enhance the competencies of drivers and promote a culture of continuous improvement.

He said the
government would continue to strive to improve access to high-quality training for commercial drivers to equip them with the needed skills and expertise for service excellence.

The Minister advised employers of drivers to contribute to their development by investing in their training to improve their efficiency and competencies.

The Road Traffic Regulations, 2012, L.I. 2180, impose an obligation on all drivers, especially commercial drivers to undergo mandatory refresher training courses before their licenses are renewed or upgraded. 

Mr Asiamah stated that the agenda of the government to ensure road safety would not make progress if vehicle owners continued to place more importance on earnings than safety.

He charged the DVLA, the National Road Safety Authority, and all stakeholders in the road safety space to include vehicle owners in their safety campaigns to ensure a holistic approach to dealing with the carnage on the roads.

The Minister urged transport operators to embrace the documents as their ‘h
oly book’ by ensuring that the manual was put to good use. 

Mr Kwasi Agyeman Busia, Chief Executive, DVLA, said the curriculum would address the challenges faced with the complexity of road infrastructure.

Ghana, he said, suffered economic losses due to road traffic crashes, amounting to 1.6 per cent of the Gross Domestic Product.

Mr Busia said the manuals integrated best practices in safety management, ensuring that every driver was well equipped for safety in all spheres.

Mr Jsaon Finch, Project Lead, Transaid, UK, said discussions would be initiated to harmonise the manuals with ECOWAS to ensure road safety.

Dr Fareed Arthur, National Coordinator, Africa, Africa Continental Free Trade Area, underscored the importance of the documents in unlocking the Africa space to facilitate seamless transportation within the continent.

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

Solidaridad has ended the first phase of the Cocoa Life Programme with a series of engagements in programme communities and districts across the Eastern region of Ghana.

The five-year Programme, implemented between October 2018 and December 2023, focused on supporting cocoa-growing communities to strengthen their capacities.

A statement issued in Accra by Solidaridad said it was to achieve their long-term goals geared toward driving their economic development and prosperity.  

It said that funded by Mondelez International, the Programme successfully trained 10,409 cocoa farmers in good agricultural practices, resulting in higher yields.

The statement said the introduction of additional livelihood options, such as bead making, pastry making, soap production, and vegetable production under the Programme, created employment opportunities for participants.

It said about 4,139 (42.9  per cent) cocoa farmers were practising at least one of the additional livelihood activities, while 1021 (53.3 per cent) women,
who participated in the training in additional livelihoods have started or expanded their enterprises.

 Additionally, 9,379 (97.2 per cent) of Cocoa Life households reported having sufficient access to food throughout the year. 

The statement said 9,176 farmers in the Cocoa Life communities had subscribed to farmer organisations/cooperatives and are active members. 

‘This has increased their access to resources as well as capacity building opportunities, financial resources and credit facilities, and enhanced market opportunities, amongst others,’ he added. 

 It said 1,015 (53 per cent) women in Cocoa Life communities had taken up leadership and decision-making roles within their communities and farmer organisations.

It said as of last 2023, farmers in the Cocoa Life communities were recording an average yield of one metric tonne per hectare.

‘As a result, the farmers have recorded a 50.4 per cent increase in their average annual cocoa income per hectare,’ the statement said. 

The programme also suppor
ted 206 community development initiatives as outlined in the community action plans developed by the local communities. Additionally, 70 per cent of these plans have been integrated into the medium-term development plans of various district assemblies.

Since January 22, 2024, Solidaridad has been engaging programme stakeholders in all 122 Cocoa Life communities as well as the four districts to take stock and solicit feedback on the programme’s impact.

It was also to distil invaluable lessons directly from project participants (farmers, women, men, youth and children).

 It sought to identify areas for improvement in future interventions, disseminate key findings to the communities and discuss avenues for sustained collaboration.

At the inaugural district close-out, held on 9 February 2024, at the New Juabeng Municipal Assembly, Mr Kwame Boadi Apau, Programme Manager for the Cocoa Life Programme expressed gratitude to the stakeholders for their invaluable support. 

‘Solidaridad under phase one of the Progr
amme, worked on two of the intervention areas – sustainable cocoa farming business and empowered cocoa communities,’ he said.

He said through these interventions, farmers have gained knowledge and skills to improve their productivity and livelihoods. 

‘Communities have been empowered to initiate community projects and the next generation of cocoa farmers have also been inspired and equipped. Without your support, the remarkable results we have attained would not have been possible,’ he said. 

Mr Apau emphasized the importance of collaborative efforts among community members and farmer unions to ensure the sustainability of cocoa farming, particularly in light of the region’s peri-urban dynamics.

He also highlighted Solidaridad’s ongoing engagements with key stakeholders to address pertinent challenges.

Nana Bekoe Bismark, Chief of Mpaem, said, ‘The training sessions on good agricultural practices, leadership, community development and financial literacy, amongst others, have greatly improved the lives of
cocoa farmers and empowered our communities.’

Mr Samuel Asiedu, a 61-year-old Cocoa farmer from Esaase, who shared the impact of the Cocoa Life Programme in his life, said through the coaching sessions on good agronomic practices, he was able to double his cocoa farm yields (from 1,280kg to 2,560kg) within two years, propelling him to financial stability and enabling him to support his children’s education.

‘2019 was a tough year for me because I could not harvest more Cocoa from my 5-acre cocoa farm. Through the farmer coaching, I got to know that fertilizer and pesticide application at the right time, pruning, diseases and pest control will help improve my yields,’ Mr Asiedu added.

Mr Patrick Newman Kortey, a young  Cocoa Farmer, who has now become an entrepreneur and an inspirational leader to small-scale farmers, his life took a significant turn when he joined the Cocoa Life programme in 2019, where he benefited from additional livelihood training.

From grasscutter farming to fish farming, Kortey has
diversified his income streams and become an advocate for sustainable farming practices.

Today, Patrick boasts of four fish ponds which can stock up to 7,000 fingerlings. He makes up to 4,200 Ghana cedis (371.68 dollars) from the sale of unprocessed and processed fish. He is currently also engaged in snail rearing.

‘This programme has really improved my income and standard of living. I am now able to take good care of my family and provide quality education for my three children,’ he said. 

Madam Rose Eyisibea, another beneficiary said she leveraged the training to cultivate vegetables, significantly augmenting her income and enhancing her quality of life.

‘I earn 500 Ghana cedis a week from selling my produce. I would not have believed it if someone told me I could make so much from farming garden eggs and pepper. The income I made was more than what I earned from my cocoa farm during my last harvest,’ she said. 

Source: Ghana News Agency

A four-day arts and cultural festival has opened at Sekondi, to project the creative arts sector within the Sekondi-Takoradi Metropolis of the Western Region.

The festival, dubbed: ‘Sakeva Transnational Cultural Festival’, is being organised by the Sekondi-Takoradi Metropolitan Assembly (STMA) through the European Union-funded Twin Cities in Sustainable Partnership Project (TCSPP).

It Is being held in collaboration with the Centre for National Culture, Ghana Association of Visual Artists, Takoradi Technical University, Ghana Tourism Authority and Ghana Export Promotion Authority.

The theme for the maiden festival is: ‘Projecting Sekondi-Takoradi through creative arts’, and would feature activities such as an arts and crafts exhibition, a display of the eight Akan Clans totems, a symposium on arts and tourism, a drawing and cooking competition for students, and a traditional fashion show.

‘Sakeva’ is an Ahanta dialect translation of ‘Sankofa’, an Akan word with the literal meaning: ‘Go back for it’, thus,
the festival is meant to rejuvenate and promote ancient and indigenous artefacts, artworks of local artists, and heritage sites within Sekondi-Takoradi.

The opening event drew participants from indigenes, some tourists, traditional authorities, students, and religious leaders among others who witnessed sterling and captivating rich cultural displays, and some masquerade dance moves, popularly known as ‘Ankos.’

The chiefs and Queen mothers were clad in their beautiful traditional regalia, with their sub-chiefs and elders also in their costumes sitting elegantly in state.

The Folkloric Dance Group performed some exciting cultural dance moves to the admiration of all.

Beautifully handcrafted artworks made in ceramics, colourful paintings, sculptures, traditional wears and paraphernalia, and basketry among other locally made artefacts were on display to serve as an opportunity for indigenes to reconnect with their cultural roots and heritage.

Aside from promoting the cultural heritage of the people of Sekond
i-Takoradi, the Sakeva Festival also to highlight the critical role the creative arts industry played in creating employment and promoting tourism and the creativity of local artists.

It was also meant to enhance effective collaboration with stakeholders, increase the market value and recognition of indigenous arts and crafts, and ensure sustainable growth of the industry in the Metropolis.

Mr Kwabena Okyere Darko-Mensah, the Western Regional Minister, Mr Andrew Egyapa Mercer, the Minister for Tourism, Arts and Culture, Nana Kobina Nketsia V, Paramount Chief of Essikado Traditional Area and Mr Abdul-Mumin Issah, the Sekondi-Takoradi Metropolitan Chief Executive are some of the dignitaries expected to grace the occasion.

Source: Ghana News Agency

The local authority in the Sekyere Afram Plains District, Ashanti Region, is taking steps to enact a bylaw to regulate cattle rearing to help prevent conflict between farmers and herdsmen in the area.

The move follows proposals from research conducted between 2019 and 2024 into the activities of herdsmen and farmers in the locality.

When finalised, the law will require herdsmen to obtain ‘a herding permit’ from the District Assembly and ‘a land allocation permit’ from landowners before cattle graze in the area.

It makes provision for compensation for farmers in the event of crop damage, the establishment of a District Herding Committee, and also prohibits night grazing among others.

Dr Osei Tutu of the Faculty of Renewable Natural Resources, Kwame Nkrumah University of Science and Technology, made this known at a stakeholder meeting in Accra to discuss findings of the ReDIAL project funded by the European Union and implemented by local partners.

The project seeks to ‘contribute to innovation in agricultu
re and food systems in Ghana through research, application of technology, organisation of farmers and multi-stakeholder platforms for policy reforms.’

Presenting the findings of the research, Dr Osei Tutu said ‘occasional clashes’ between farmers and transhumance herders (Fulani herdsmen) required more pragmatic solutions.

Despite the peaceful co-habitation of farmers and herdsmen in the Sekyere Afram Plains, he observed that farmer-herder conflict emerged because the herdsmen operated without clear procedures.

‘They [herdsmen] get the land from the owners and the owners do not specify any dos and don’ts…When the bye-law is finalised, it will help sanitise herding in the Sekyere Afram Plains District.

‘To the best of our knowledge, we are not aware of any bylaws in Ghana which regulate herding, and we believe this is something other districts in Ghana can adopt,’ he stated.

The researcher said the draft had gone through ‘multi-stakeholder reviews’ and was left with ‘a series of Assembly seatings and proc
edures to be gazetted’.

Dr Osei Tutu stressed the importance of cattle rearing as ‘a relevant livelihood activity in Ghana’ which had to be sustained like other agricultural activities.

‘The value chain of cattle rearing is huge; it is employing lots of people from kebab to restaurant joints, hotels, and marketplaces, and generating revenue so we need [to sustain] it.

‘Cattle rearing is happening across the country and laws are needed to regulate it…when the laws are made, the herders will obey the laws,’ he added.

To deal with the challenges of free-range cattle rearing, Dr Osei Tutu urged the Ministry of Food and Agriculture to implement its proposal to establish grazing reserves for cattle rearers.

‘The grazing reserve is a vast land where cattle rearers can move their cattle to in the dry season…they are much bigger and can accommodate about 200,000 cattle…that is a more practical way to find space for cattle during the dry season,’ he said.

Source: Ghana News Agency

The Ghana Immigration Service, Kpone district has sensitised Golf City residents on security issues to equip them in identifying threats and reporting them.

The sensitization formed part of a community engagement organised by Mr Isaac

Newton Tetteh, the Assembly Member of the Nmlitsakpo Electoral Area to discuss social, economic, security and other concerns in the community.

The meeting focused on the need for landlords to demand state permits from foreigners before giving their spaces for them as well as check their business operating permits to know if they were legally allowed to operate businesses in the country.

Deputy Superintendent of Immigration (DSI) Janet Owusu Acquaye encouraged the residents to prioritize their personal safety, as well as that of the community and the country, irrespective of their financial challenges to check for valid documents from foreigners.

DSI Acquaye urged them to be security alert and identify suspicious people within the locality and if possible, report to security
officials to avert possible terrorist attacks.

She mentioned that security was a shared responsibility and therefore appealed to the residents to help safeguard national peace and harmony.

Mr. Isaac Newton Tetteh, the assemblyman for the area, thanked the immigration officers for the security education as according to him it would help in the security situation in the community.

He said the Golf City Community Association Annex B had been revamped to ensure the initiation of some self-helped developmental projects.

He commended residents for agreeing to construct drainages in the area to reduce flooding in the communities, especially in the rainy season.

Source: Ghana News Agency

Mr Djerassem Mbaiorem, UNHCR’s Head of Office in Bolgatanga in the Upper East Region has noted that the Solution to the refugee situation is not rocket science.

He said it requires interventions in education, health, livelihood opportunity, and access to water is key for them to live dignified lives.

He said everything would be doable if all stakeholders commonly ensured their responsibility in terms of protecting and assisting the refugees to live peacefully with host communities.

Mr Mbaiorem who said this in an interview with the GNA at Tarikom settlement in Bawku West District was grateful to the chiefs and people of Tarikom for the peaceful coexistence with the refugees and noted that though initially the refugees entertained fears of living at the settlement, over the period the leadership of the refugees had established the trust and even moved to the chiefs compounds to interact with elders there.

He indicated that shelter and livelihood challenges to improve the daily conditions of the refugees we
re still inadequate and he said the UNHCR was working with donors and other development agencies to see how they can help improve the situation.

‘We are still discussing with other donors and development agencies to see how they can help with more infrastructure and facilities in the host community especially classrooms, shelter and CHPS compound’. The Head of the office noted.

‘The schools have more than 800 children and if we have more children coming, the school will be over-crowded and so we need to support other schools around hence the need for more infrastructures for the children,’ he said.

He also mentioned the need for support for a CHPS centre to enhance the service delivery capacity of the health centre and or health workers to give first aid response and receive deliveries of pregnant mothers since pregnant women are sent to the district hospital in Zebilla hospital.

Some of the organizations he mentioned were currently at the camp at Tarikom supporting ADRA helping with livelihood activities
among others while other religious and NGOs have provided support to the refugees.

He also noted that the Ghana Refugee Board (GRB), Department of Women and children, and Social Welfare were also working to address child protection issues and to make sure refugees’ psychosocial issues were addressed.

Mr Mbaiorem said since March refugees have been receiving cash donations to enable them to meet their basic needs and nutrition needs and together with UNHCR were supporting the refugees with livelihood activities to restore their dignity.

He said children at the camp have access to National services including the NHIS while about 250 of the children were enrolled in the primary school and Junior high schools in the community.

He advised refugees to abide by the laws and rules of the country, endeavour to keep their environment clean and live peacefully with host communities while interventions for more shelter, which was a challenge were sought for them.

Speaking on Ghana’s Asylum policy, Mr Mbaiorem noted
the free movement policy of asylum seekers and praised the efforts of the Ghana government in ensuring all refugees living close to border communities moved to the settlement camp.

He said the initial settlement created for the refugees in Sapeliga, also in the Bawku West, just two kilometres to the borders of Burkina Faso was a threat to them and therefore commended the directives by the government of Ghana to ensure that refugees stayed away from the border areas for security reasons and avoidance of spillover of the conflict in Burkina Faso.

Source: Ghana News Agency

The Ministry of Local Government, Decentralisation and Rural Development (MLGDRD) has clarified a recent news report misrepresenting Mr Ekow Vincent Assafuah, Deputy Minister of MLGDRD’s comments on poverty levels in Ghana.

A press statement made available to the Ghana News Agency by the Public Relations Office of the MLGDRD said the news item, which was published by TV3 misrepresented the comments made by the Deputy Minister during an interview.

It said the article inaccurately suggested that the Deputy Minister claimed poverty levels in Ghana were far better than those in the United States.

The statement said during the interview, Mr Assafuah was primarily focused on propagating the achievements of the Ministry.

‘When asked about the economic hardships faced by Ghanaians and their ability to afford basic needs, the Deputy Minister acknowledged that these are indeed challenging times,’ it added.

The statement said he highlighted that Ghana, like many other nations, was not immune to the adverse effects
of the COVID-19 pandemic and the Russian-Ukraine war.

It said the Deputy Minister further elaborated that economic hardship was a global issue, not unique to Ghana.

The statement said to provide context, he mentioned that 37.5 million people in the United States were living in poverty and that this was intended to illustrate that even highly developed countries were experiencing significant economic challenges.

‘It is crucial to maintain accuracy and context when reporting on public statements to ensure a well-informed discussion’

‘Misrepresenting the Deputy Minister’s comments does not contribute to the productive discourse necessary to address these pressing issues,’ the statement added.

It said a video of the interview was available online and on the social media handles of the Ministry for verification.

The statement said the ministry remained steadfast in its commitment to improving the living conditions of all Ghanaians and addressing the economic challenges faced.

Source: Ghana News Agency

The alleged decision by the chief and people of Fiapre in the Bono Region to swear an oath of allegiance to the Asantehene and the Asanteman Council, has attracted the displeasure of the Odomase Number One Traditional Council in the Sunyani West Municipality.

The Council, presided by Odomfour Dr Kwasi Apraku, the Paramount Chief of Odomase Number One Traditional Area, has therefore, cautioned the people of Fiapre, near Sunyani to rescind that decision for their own interest, and that of the yet to be born generation.

Addressing a news conference at Odomase, the municipal capital on Thursday, Nana Yaa Adanse Poduo II, the Paramount Queen-mother of Odomase Number One explained Fiapre lands were part of the Odomase Number One, and the people had no traditional right to owe allegiance to the Golden Stool.

‘We are aware of the decision being taken by the Fiarpehene Obrempong Professor Kyem Amponsah II to owe allegiance to the Golden Stool (Sikadwa) of the Asanteman council. As a chief, he can take that personal
decision, however, not with the Fiapre stool,’ she indicated.

Flanked by other sub-chiefs, and clad in mourning regalia and red armbands, Nana Poduo II, cautioned the chiefs of Fiapre, warning that such a decision would not only attract the wrath of the Odomase Number One stool, but majority of the chiefs and people of Fiapre and Odomase.

‘The chiefs and people of Fiapre are aware that their ancestors pleaded, and the Odomase Number Traditional Council gave the Fiapre land as a refuge to them. This is an ancient history the Fiapre people can’t hide from it,’ the Queen-mother stated.

She said the chief and people of Fiapre would remain ungrateful, if they failed to recognise and acknowledge the numerous assistances, they received from Odomase Number One in those days, saying ‘the Fiapre people can swear allegiance to Asanteman only if they move from our land’.

Until that was done, Nana Poduo II vowed that there was no way the Asantehene could reign over the chief and people of Fiapre.

In a brief history,
Nana Godlove Boateng, the Abusuapanyin (head of family) of the Krontri Royal Division of the Odomase Number One Traditional Area explained the chief and people of the Odomase were the first to settle in the Municipality around 1606.

‘I think the Fiapre people must go back to history and study and understand their origin before they take that decision,’ he stated.

Source: Ghana News Agency

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