Gov’t to boost state banks’ role in financing MSMEs – Deputy Finance Minister

Deputy Minister of Finance, Thomas Nyarko-Ampem, has reaffirmed government’s commitment to strengthening state-owned financial institutions, announcing that state-owned enterprises (SOEs) and covered entities will be encouraged to transact more with state banks such as GCB Bank PLC.

Speaking at the Sixth Quadrennial Delegates Conference of the Professional and Managerial Staff Union (PMSU) of GCB Bank PLC in Ho, Nyarko-Ampem said the directive was not meant to sideline private banks but to build the resilience of state-owned banks to better support national development priorities, particularly Micro, Small and Medium Enterprises (MSMEs).

“This is not about pushing out private banks,” he clarified. “It is about strengthening our own banks to finance national priorities, especially MSMEs, which are the backbone of our economy.”

The Deputy Minister stressed that MSMEs remain critical to Ghana’s economic transformation, accounting for over 90% of businesses, employing nearly 80% of the workforce, and contributing about 60% to GDP.

“At the continental level, six in every 10 Africans work for an SME, with the sector creating eight in 10 new jobs,” he noted.

Nyarko-Ampem outlined several policies aimed at supporting businesses and improving the operating environment, including:

• Macroeconomic stability with falling inflation and interest rates.




• Tax reforms, with a comprehensive VAT overhaul in the 2026 Budget to simplify compliance and incentivize local manufacturing.




• The Big Push Initiative, committing the cedi equivalent of US$10 billion to bridge infrastructure gaps.




• Skills and entrepreneurship programmes, with over GH¢564 million already allocated and a further GH¢410 million planned for 2025.




• The Women’s Development Bank, set to launch in January 2026 to finance women-led enterprises.

“These interventions show that government is not only stabilizing the economy but also investing directly in skills, entrepreneurship, and infrastructure to ensure MSMEs thrive,” he said.

Commending GCB Bank for posting strong half-year results—GH¢2.79 billion in interest income and GH¢2.7 billion in operating income—Nyarko-Ampem urged the bank to channel more support toward MSMEs.

“With such performance, expectations are high. Declining Treasury bill rates should encourage you to diversify your portfolio and extend more affordable credit to productive enterprises,” he said.

He also advised the bank to integrate digital solutions and artificial intelligence into SME financing while investing in staff training to enhance service delivery.

Board Chairman of GCB Bank, Prof. Joshua Alabi, described the bank as a “national asset” and revealed plans to expand operations into Liberia, Sierra Leone, The Gambia, Burkina Faso, Niger, and Mali, stressing that government support would be crucial for this ambition.

Meanwhile, Deputy Secretary-General of the Trades Union Congress (TUC), Dr. Kwabena Nyarko Otoo, praised PMSU for promoting internal democracy but urged GCB Bank to prioritize long-term patient capital for SMEs.

“Too many Ghanaian businesses remain micro enterprises and collapse when their founders retire. What they need is affordable, long-term financing—not short-term loans that set them up for failure,” he argued.

Dr. Otoo also called for protective trade policies to safeguard local businesses from premature exposure to foreign competition.

The Deputy Minister commended PMSU for focusing on national development rather than only workplace concerns, stressing that unions, management, government, and financial institutions must work together to strengthen MSMEs.

“Together, we can build a more resilient and inclusive economy that delivers prosperity for all,” he concluded.