Economist questions sustainability of government’s SME Go initiative

Prof. Patrick Asuming, an economist at the University of Ghana Business School, has raised concerns about the sustainability of the government’s SME Go initiative, citing fundamental issues in the small business sector that remain unaddressed.

Speaking to Joy Business at a Quarterly Economic Roundtable organised by the Ministry of Finance and the University of Ghana, Prof. Asuming argued that the government should focus on solving the overall challenges facing small businesses rather than introducing another initiative that may face sustainability issues.

“I would have preferred we solve the overall business problems before this initiative. We have a long history of government bringing on board such interventions to support businesses, but there are issues of sustainability and duplication,” he said. “Will there be no political interference?”

He further stressed that strengthening the broader economy would be more beneficial to small and medium-sized enterprises (SMEs), creating a better environment for the private sector. “I think Ghanaian businesses will be competitive if the general economic environment is strong and they are not saddled with high taxes and utility,” Prof. Asuming added.

The economist also highlighted the need to direct more investment into agri-business, which he believes would have a more direct impact on wealth creation and job opportunities. “Even though the government has increased its expenditure to SMEs, agri-business has not adequately received financing,” he said, adding, “Those who don’t get this funding support—how are they going to survive?”

The SME Growth and Opportunity (Go) programme was launched by the government to mobilise GH₵8.2 billion for financial and technical support to SMEs in an effort to strengthen the private sector and boost economic growth. However, Prof. Asuming emphasized the importance of targeted investment in key sectors like agriculture for long-term economic impact.