Question

Discuss the various sources of finance available to SME in Ghana and the impact of COVID-19 on these sources of finance

Answer 1

There are various sources of finance for small and medium enterprises are available in Ghana. They are as follows-

A). Private enterprises and Export development fund.

B). Export development and investment fund

C) Business Assistance fund

D) Ghana investment fund

E) Promotion of small and medium enterprises fund.

These are the funds which are available to various kinds of small and micro enterprises which are operating in the ghanian economy.

The impact of covid-19 on these sources of finance has been maximum, because these enterprises are basically running onto high credit, and due to the unfolding of covid-19, Demand has substantially slowed down into the Ghanaian economy, it has lead to to default on the part of various small and medium scale enterprises and these funds which were offering loans to small and medium scale enterprises are facing losses because their aseets are turning bad because all the borrowers are having a lot of solvency risk associated with their debt payment because of unfolding of covid-19 which has led to a crisis like situation in the economy due to shrinkage of demand.