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Bank of Ghana and Monetary Authority, Singapore strike deal to promote SMEs

This MOU is important to Ghana’s development agenda due to the significant contribution of SMEs towards the provision of goods and services, job creation, and ultimately economic growth.

Ola Olaoluwa
Ola Olaoluwa

The Bank of Ghana (BOG) has signed a Memorandum of Understanding (MOU) with the Monetary Authority of Singapore (MAS) to collaborate in promoting Small and Medium-sized Enterprises (SMEs) through the use of technology.

This is a follow up to earlier engagements between the Governments of Ghana and Singapore, which culminated in an understanding between the two countries to work together and explore the use of technology in improving their economies for global competitiveness, Indistinct Business Magazine reports.

Governor, Central Bank of Ghana. Image Source: Indistinct Business Magazine

The MOU is aimed at building the capacity of SMEs to leverage technology for efficiency, market discovery and accessibility to global markets.

Importantly, the partnership is expected to assist the seamless integration of each country’s SME ecosystem into the global trade value chain, while introducing innovative FinTech solutions to improve SMEs’ access to financial and digital tools.

The BOG and MAS will also collaborate to develop a Financial Trust Corridor (FTC) to engender trust aimed at promoting trade between businesses and financial institutions in Ghana and Singapore.

This MOU is important to Ghana’s development agenda due to the significant contribution of SMEs towards the provision of goods and services, job creation, and ultimately economic growth.

Notably most SMEs are women-owned, represent a majority of businesses, and contribute significantly to the country’s Gross Domestic Product (GDP).

Improving the market reach of SMEs through digitization will therefore advance gender-related employment opportunities, provide affordable access to finance, and boost economic growth.

The anticipated gains from this MOU will have a positive impact on AfCFTA and underscore Ghana’s position as a gateway to Africa.

Ghana In Focus:

Population: 30.4 million (Compared to South Africa's 59.6 million)

GDP: $66.984 billion (Compared to South Africa's $369.85 billion)

GDP Per Capita: $2,220 (Compared to South Africa's $6,193)

Financial inclusion

Ola Olaoluwa

Writer | Economist | Actor | Fashion Entrepreneur