Accra: Mr. Thomas Nyarko-Ampem, the Deputy Minister of Finance, has reaffirmed the government's commitment to strengthening state-owned financial institutions, announcing that state-owned enterprises (SOEs) and covered entities will be required to transact more with state banks such as GCB Bank PLC. He emphasized that the initiative, directed by the government as a majority shareholder, is intended to reinforce national institutions' capacity to support development priorities, including financing Micro, Small, and Medium Enterprises (MSMEs).
According to Ghana News Agency, Mr. Nyarko-Ampem clarified that this move is not aimed at excluding private banks but at building robust state-owned banks capable of financing national priorities, particularly the MSME sector, which is vital to the economy. He addressed this at the Sixth Quadrennial Delegates Conference of the Professional and Managerial Staff Union (PMSU) of GCB Bank PLC in Ho, highlighting the importance of MSMEs as the engine of job creation, innovation, and opportunity, accounting for over 90% of businesses in Ghana.
The Deputy Minister outlined several government interventions designed to create a stronger business environment, including macroeconomic stability with falling inflation and interest rates, tax reforms with an upcoming comprehensive VAT overhaul, and the Big Push Initiative aimed at closing infrastructure gaps. Furthermore, skills and entrepreneurship support initiatives, alongside the launch of a Women's Development Bank, are set to bolster women-led enterprises.
Commending GCB Bank's strong half-year performance, Mr. Nyarko-Ampem urged the bank to extend more affordable credit to productive enterprises and integrate digital solutions and artificial intelligence for smarter SME financing. He emphasized the importance of investing in employee training to maintain world-class service.
Prof. Joshua Alabi, the Board Chairman of GCB Bank, echoed the call for teamwork among the bank's stakeholders, describing it as a 'national asset.' He revealed plans for GCB Bank's regional expansion into countries like Liberia and Sierra Leone, underscoring the need for government support.
Dr. Kwabena Nyarko Otoo, Deputy Secretary-General of the Trades Union Congress (TUC), praised the PMSU's commitment to national development but urged GCB Bank to focus on providing patient capital for SMEs. He advocated for protective trade policies to shield small Ghanaian businesses from foreign competition.
Mr. Nyarko-Ampem concluded by commending the PMSU for its dedication to national development, emphasizing the need for collaboration among unions, management, government, and financial institutions to strengthen MSMEs and build a more resilient and inclusive economy.
