Driving Growth for Ghana’s MSMEs: A Comprehensive Approach to Digital Transformation

The circa USD3 million three-year programme (2024-2027), is supported by the European Union and other key UN Member States through the United Nations Joint SDG Fund’s Digital High-Impact Track. It is expected to boost the productivity of approximately 25,000 Micro, Small, and Medium Enterprises (MSMEs), primarily those led by youth and women.  The programme is being implemented jointly by the UN Capital Development Fund (UNCDF), the United Nations Development Programme (UNDP) and  the UN Trade and Development under the auspices of the UN Resident Coordinator and the Ministry of Trade and Industry and in collaboration with key stakeholders.

This joint programme also aims to crowd-in additional capital to support sustainable growth and address key barriers facing MSMEs, such as limited access to capital and financial services, low levels of digital literacy and skills to meet market demands, fragmented access to reliable business information and a lack of supportive policy frameworks for e-commerce. With MSMEs comprising an impressive 92 percent of businesses in Ghana, fostering a financial ecosystem that is more attuned to their needs, enhancing financial literacy, providing access to business tools, and creating clear market opportunities, is critical for driving sustainability and growth in the sector. This intervention will be bolstered by an enabling policy environment for e-commerce, alongside a strengthened capacity of Government to develop, implement, and monitor reforms, which will, in turn, drive MSME productivity.

 “This initiative is a timely boost for Ghana’s digital journey, especially for the MSMEs that form the backbone of our economy. By expanding access to financial services, strengthening digital skills, and creating a supportive policy environment, we are equipping our MSMEs to thrive and compete in an increasingly digital world. This intervention is therefore an investment in our businesses for a sustainable growth and resilience of our national economy.” Patrick Yaw Nimo, Chief Director at the Ministry of Trade and Industry said at the inaugural project steering committee meeting held in Accra recently.

The United Nations recently leveraged key platforms within the MSME and digital ecosystem to boost visibility and raise awareness of this new programme.  For instance, at the Ghana Digital Innovation Week  held in October 2024 the UN Resident Coordinator in Ghana, Charles Abani, noted that, “This project reflects the United Nations' commitment to supporting Ghana’s digital transformation and promoting inclusive, sustainable development. By focusing on MSMEs, particularly those led by women and youth, we are helping to unlock their potential, ensuring they have the financial and digital tools to thrive in a rapidly evolving economy. The UN is proud to work alongside the government and key stakeholders to drive progress that not only advances Ghana’s economic goals but also contributes to the achievement of the SDGs, particularly gender equality, decent work, and economic growth.”

During the “Fintech for Inclusion Summit 2024”, the joint programme team further amplified the project’s objectives to a wide range of audience including market players as well as MSMEs. 

The inaugural project steering committee meeting was convened to illustrate the ambitions of the project to key stakeholders. Under the leadership of the Ministry of Trade and Industry and the UN Resident Coordinator, the meeting gathered key representatives from the Ministry of Finance, Ghana Enterprise Agency, Private Enterprises Federation, Civil Society Platform on SDGs as well as the European Union Delegation, representing the pool of contributors and funders. 

This project aligns with the European Union’s broader development goals across the continent. With its support, the EU is reinforcing its commitment to Africa’s digital transformation and inclusive growth, particularly empowering youth and women-led MSMEs in Ghana. 

During the meeting, it was clear that this project goes beyond traditional development aid by helping to reinforce Ghana’s Agenda 2030 financing ecosystem and catalyzing strategic investments that unlock public and private capital towards the Global Goals. “UN Capital Development Fund (UNCDF) is in the driving seat for this joint programme to take advantage of its unique mandate of the UN’s catalytic finance entity for developing countries. Such a role is very much in line with the goals of the JSDGF and its contributors as it intends to provide de-risking capital that can unblock additional finance towards SDG-aligned targeted investments with potential for replication and scaling up” said Arianna GASPARRI, Technical Specialist, UNCDF.

By the end of the implementation period, the project is set to create transformative and sustainable impact in Ghana’s MSME landscape by building enduring resilience and growth for 25,000 MSMEs.  Alongside providing access to financial services, the initiative will strengthen government-led business support infrastructure through the Digital Gateway, a one-stop resource for MSMEs. The initiative will also strengthen capacity of policy makers to implement and monitor policy reforms, through the use of the UNCTAD eTrade Reform Tracker, which will enhance long-term sustainability of government actions. Additionally, MSMEs will gain critical digital skills, encompassing both financial and business-oriented expertise. 

This joint programme is made possible thanks to the generous contributions to the Joint SDG Fund from the European Union and the Governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, Republic of Korea, Saudi Arabia, Spain, Sweden, and Switzerland. Their support is driving a transformative movement towards achieving the Sustainable Development Goals (SDGs) by 2030.