Micro Small and Medium Enterprises (MSMEs) will continue to face challenges in accessing finance from financial institutions over their inability to produce accurate records of their businesses. This is according to General Manager, Business Banking at Consolidated Bank Ghana, Michael Kwansa.
Access to finance remains a key constraint to MSME growth and development in many emerging economies including Ghana. This comes despite the fact that the MSME sector is estimated to employ more than 80% of the workforce and generates over 70% of GDP.
In an interview with Citi Business News at the sidelines of press seminar organized by the UK-Ghana Chamber of Commerce in collaboration with the Consolidated Bank Ghana Michael Kwansa said MSMEs must prioritize booking keeping in order not to be denied access to financing.
“What most of them do is that they don’t keep proper records, they sell and immediately they spend the money or use it to pay their suppliers, so there’s no record or history of their background to give them anything. If you don’t have any records with any bank no bank will give you money out of the blue , every bank will want you to show the history of your banking records within at least the past two or six months and that is what has hindered most MSMEs from getting loans from banks, so what we do as a bank is help these businesses keep track a nd get the records they will need to qualify from a loan from us”.
About UK- Ghana Chamber
The UK-Ghana Chamber of Commerce (UKGCC) was established in 2016 with financial support from British High Commission in Ghana, to promote bilateral trade between the UK and Ghana. It is the leading UK business support organization in Ghana.
The UKGCC provides support for its members through the sharing of knowledge and ideas, creating platforms for building stronger networks and providing linkages with government and its agencies