Dr. Johnson Asiama, Governor of the Bank of Ghana, emphasized that for small and medium-sized enterprises (SMEs) to grow and become part of sustainable value chains, banks need to play a central role in supporting them.
“Finance is the lifeblood of any business,” Dr. Asiama said.
He urged banks to move beyond the traditional approach of lending based only on collateral. Many SMEs don’t have fixed assets, but alternative models like cash-flow lending, purchase-order financing, and supply-chain finance have proven successful in other parts of the world.
In places like Asia and Latin America, SMEs use the creditworthiness of their main buyers to access affordable working capital. Dr. Asiama believes Ghanaian banks can adopt similar strategies, especially in key sectors like cocoa, agro-processing, and manufacturing.
He also encouraged banks to make better use of risk-sharing tools. For example, in Rwanda, well-managed partial credit guarantees have helped unlock more SME loans and boosted job creation. In Ghana, programs like the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) need to be used more actively—with stronger transparency and governance—to build trust among lenders.
Third, Dr. Asiama stressed the importance of partnering with Development Finance Institutions (DFIs) like Afreximbank and the African Development Bank (AfDB), which already provide blended finance and trade lines. He pointed to Bangladesh’s garment sector as an example, where such partnerships helped the industry grow quickly. Ghana can adopt similar approaches, especially in light manufacturing and pharmaceuticals.
“Fourth, banks should embrace digital tools,” he added. “Technologies like e-invoicing, digital payments, and electronic trade documentation help reduce delays, build trust, and let banks track SME performance in real time. Fintech partnerships are making this possible across Africa and beyond.”
Finally, he emphasized that banks need to offer more than just money—they should also provide knowledge and support. Many SMEs struggle with meeting export requirements, documentation, or sustainability standards. Banks can combine financing with advisory services to help clients with certification, traceability, and carbon reporting. He noted that commercial banks in Kenya are already doing this for horticulture exporters, and Ghanaian banks should follow their lead.
Dr. Asiama made these remarks during a workshop organized by the Ghana Association of Banks in Accra on Thursday, September 11.
What the Bank of Ghana Is Doing to Support Banks
While encouraging banks to innovate and support SMEs, Dr. Asiama also highlighted the steps the Bank of Ghana has taken—and continues to take—to create a strong financial foundation and an enabling environment for growth.
“First, we’ve focused on financial sector reforms. Over the past few months, we’ve worked hard to strengthen bank capital, improve supervision, and enhance risk management. These changes weren’t always easy, but they were necessary. Today, Ghana’s banking system is more resilient, better capitalized, and better equipped to handle shocks. This strength allows banks to take the calculated risks needed to support SMEs.
“Second, we’re championing innovation and digital finance. Our regulatory framework supports digital financial services and helps expand access to inclusive financial tools. Mobile money, interoperable payments, and e-wallets aren’t just conveniences—they form the digital backbone that enables SMEs to transact, build credit histories, and access formal financing. We’re also developing guidelines for open banking and virtual asset service providers to keep our financial system modern, secure, and open to innovation.
“Third, we’ve improved credit infrastructure. To overcome long-standing barriers to SME lending, we’ve strengthened credit information systems. Ghana now has active credit bureaus, a functional Collateral Registry, and ongoing reforms to reduce non-performing loans. These tools help banks make lending decisions based on risk, not just collateral.
“Fourth, collaboration is key. We’ve partnered with the government and other regulators to establish the Financial Stability Council. This platform helps us monitor risks together, coordinate responses, and protect the integrity of our financial system. When stability is assured, banks can confidently support SMEs and the wider economy.
“Finally, we’re promoting green and transition finance. Around the world, financial institutions are integrating climate considerations into SME lending—through green loans, credit guarantees, and advisory services. Ghana must keep pace. As sustainability becomes essential for global market access, we’re encouraging financial products that help SMEs adopt energy-efficient technologies, meet international standards, and join sustainable value chains.
“All these measures show our belief that a strong, modern, and inclusive banking system is crucial for SME growth.”
