Ghana: CBG MD calls for further support for national growth engine

The Managing Director of Consolidated Bank Ghana (CBG), Daniel Addo, emphasized the need for a stronger national commitment to empowering small and medium-sized enterprises (SMEs).

He stressed the importance of prioritizing resource allocation, building productive capacity, investing in human capital, and creating an enabling environment for the vital SME sector.

“It stands to reason that we, as a country, should commit resources to this sector, build productive capacity, invest in human capital and create an environment for the sector to thrive,” Mr. Addo stated during a media interaction at the CBG Head Office following the listing of Kasapreko Co. Plc.’s GH¢600million Series 1 Note on the Ghana Fixed Income Market (GFIM).

His plea echoed global statistics, underscoring the transformative potential of supporting SMEs. According to the World Bank, SMEs account for up to 60 percent of global employment and contribute 50 percent of the global gross domestic product (GDP).

Additionally, research conducted by the International Labour Organization (ILO) indicates that SMEs generate up to 70 percent of new jobs worldwide. Furthermore, according to the World Bank, every US$1 invested in an SME yields up to US$3 in return for the national GDP.

In Ghana, where SMEs constitute over 90 percent of businesses and wield considerable GDP potential, Mr. Addo’s call to action resonated profoundly.

CBG’s collaboration with Kasapreko, a prominent local beverage manufacturer, exemplified the transformative effects of focused assistance. Acting as the arranger for the GH¢600 million Note issuance, CBG facilitated access to affordable financing, empowering Kasapreko to expand operations and goals, ultimately resulting in the creation of an additional 1,200 jobs.

“This transaction is another addition to the issuances on the corporate bond market and I am supremely confident that it will be the spark that ignites growth in this market segment,” Mr. Addo stated.