AI-powered transformation: Unlocking growth potential for SMEs

In the dynamic and highly competitive business landscape of the 21st century, staying ahead of the curve is no longer a choice but a necessity for survival and growth.

For Small and Medium-sized Enterprises (SMEs) in Ghana, the path to competitiveness is increasingly being shaped by the adoption of advanced technologies, particularly Artificial Intelligence (AI).

Once considered the preserve of large multinational corporations, AI has rapidly emerged as a game-changer for businesses of all sizes, offering unparalleled opportunities to innovate, optimize operations, and deliver personalized experiences to customers.

Since 2017, the wave of AI adoption has swept across industries globally, and Ghanaian SMEs have been no exception. Faced with challenges such as resource constraints, market volatility, and the need for agility, these businesses are turning to AI as a tool and a strategic asset that can propel them into new realms of efficiency and growth.

The transformative power of AI is being felt across sectors—from agriculture, where it is revolutionizing farming practices, to financial services, where it is driving financial inclusion, and e-commerce, where it is enhancing consumer engagement and sales.

As Ghanaian SMEs increasingly embrace AI, they are not only enhancing their operational capabilities but also positioning themselves to compete on a global stage. This feature explores how AI is reshaping the SME landscape in Ghana, driving innovation, and catalyzing growth, while also looking at the broader regional impact of this technological revolution.

The AI Revolution: Global and Regional Perspectives

Globally, the adoption of AI has experienced exponential growth, with the market size expanding from $16.06 billion in 2017 to a projected $327.5 billion by 2024. This rapid expansion has not been confined to developed markets; emerging economies, including those in West Africa, have also embraced AI as a tool for economic transformation.

In Ghana, the adoption of AI by SMEs has seen a significant upward trajectory. According to the African Development Bank’s 2022 report, the adoption rate among Ghanaian businesses has grown by 28% annually since 2017. This growth is particularly notable in sectors such as finance, agriculture, and e-commerce, where AI is being utilized to streamline operations, improve decision-making, and enhance customer experiences.

AI-Driven Growth in Ghana

Several Ghanaian businesses have successfully integrated AI into their operations, leading to remarkable growth and competitiveness. One notable example is the agricultural sector, where AI-driven solutions have revolutionized farming practices.

Companies like Esoko and Farmerline have utilized AI to provide real-time data on weather patterns, crop diseases, and market prices to farmers, significantly improving productivity and reducing losses. From 2017 to 2023, these companies reported a 35% increase in farmer productivity, contributing to a more resilient agricultural sector.

In the financial services sector, AI has enabled SMEs to offer personalized financial products and services. For instance, ExpressPay, a leading fintech company in Ghana, has leveraged AI to enhance its mobile payment solutions, resulting in a 50% increase in transaction volumes between 2018 and 2022. This growth not only underscores the potential of AI in financial inclusion but also highlights how technology can drive economic growth in developing regions.

E-commerce has also been transformed by AI, with companies like Jumia Ghana using AI algorithms to optimize inventory management, predict consumer behavior, and personalize marketing efforts. As a result, Jumia Ghana saw a 40% increase in sales from 2017 to 2021, demonstrating the significant impact of AI on business growth.

The Broader Regional Impact

Beyond Ghana, other West African countries have also experienced similar trends. In Nigeria, AI adoption has fueled the growth of the fintech sector, with companies like Paystack using AI to detect and prevent fraud, ensuring the security of millions of transactions daily. From 2017 to 2020, Paystack’s user base grew by 150%, a testament to the effectiveness of AI in building trust and scalability in digital financial services.

In Côte d’Ivoire, the healthcare sector has seen improvements through AI-powered diagnostic tools, enabling faster and more accurate detection of diseases. This has led to a 20% improvement in patient outcomes in urban areas from 2018 to 2023.

Conclusion

The rise of Artificial Intelligence as a critical growth catalyst for SMEs in Ghana and the broader West African region cannot be overstated. From agriculture to finance and e-commerce, AI has proven to be a powerful tool that empowers businesses to transcend traditional limitations, enhancing their ability to operate efficiently, make informed decisions, and offer tailored experiences to customers. The adoption of AI since 2017 has ushered in a new era of opportunity for Ghanaian SMEs, driving innovation, competitiveness, and economic resilience.

As we look to the future, the continued integration of AI into the operations of SMEs in Ghana and across the region will likely define the next phase of business evolution. Those who are quick to adapt and harness the full potential of AI stand to gain a competitive edge, not just in the local market but on a global scale.

In an increasingly interconnected world where technology is the linchpin of success, AI is more than just a trend—it is the engine that will power the growth and sustainability of SMEs for years to come.

The author is the CEO of Electronic Merchant Services, Ghana