Accra: Mr. Joe Jackson, Chief Executive Officer of Dalex Finance, has criticized the current state of Small and Medium-Scale Enterprises (SMEs) funding in Ghana, describing it as economic charity rather than a deliberate growth strategy. He expressed these views during a Chartered Institute of Marketing Ghana (CIMG) public engagement event, 'Evening with Joe Jackson,' themed 'Ananse Stories About the Ghanaian Economy.'
According to Ghana News Agency, Mr. Jackson argued that the perception of SME support as a catalyst for national growth is misleading. He explained that while SMEs are a crucial part of the economy, many operate informally, face chronic productivity challenges, and struggle to scale. Despite over 60 different SME initiatives launched in the past decade, productivity remains low, and many firms collapse within three years, he noted.
Mr. Jackson emphasized that if launching SME programs truly fostered growth, Ghana would by now be an economic powerhouse. He pointed out Ghana's failure to nurture productive firms capable of anchoring industrialization and retaining value from local resources. He advocated for a shift from broad SME interventions to a targeted approach supporting high-performing domestic firms.
He cited examples of countries like Singapore, Malaysia, and South Korea, which achieved growth by nurturing strategic winners instead of spreading resources across numerous micro-businesses. Mr. Jackson stressed that not all SMEs will grow, and the focus should be on backing exceptional firms to drive economic development, irrespective of political considerations.
Mr. Jackson further linked the lack of strong domestic companies to Ghana's persistent currency challenges and the dominance of foreign firms in key sectors. He cautioned that as long as capital and decision-making remain external, profits will continue to be repatriated, leaving Ghana as a 'tenant in its own economy.'
He urged policymakers to restructure pension fund rules to direct long-term domestic capital into productive Ghanaian firms rather than primarily investing in government securities. On a broader economic scale, Mr. Jackson warned that reliance on external capital, limited value addition in the extractive sector, and weak local content law enforcement continue to undermine Ghana's economic sovereignty.