Mid-Year Budget: Save our SMEs – Business leaders entreat gov’t

The Executive Secretary of the International Chamber of Commerce (ICC) Ghana, Emmanuel Doni-Kwame, has urged the government to cushion Small and Medium Enterprises (SMEs) from the reeling impact of COVID-19.

COVID-19 has thrown away the fortunes of many companies since the pandemic struck with several firms scaling down operations.

While some companies have downsized, others have taken the option of redundancies, with production hit by lockdowns and restrictions.

Ahead of the Mid-Year Budget Review Presentation by Finance Minister, Mr Ken Ofori-Atta, on July 23, Mr Doni-Kwame has highlighted the need to “save lives and livelihoods, and also save our SMEs“.

He is expecting support that would keep businesses in operation, leading to the “preservation of jobs and activities in the real economy.”

He proposes low-interest loans, trade finance, working capital loans with flexible and deferred terms, tax reliefs, loan payment reliefs, rent relief and relaxation of demurrage.

Additionally, there could be delayed payment of permits or cuts in permits and licence fees to enable the revival of SMEs operation.

Beyond the GHc 600 million support provided by the government, which was supervised by the National Board for Small-Scale Industries (NBSSI), ICC Ghana is expecting “some grants for key sectors” of the economy.

He implores the government to pursue open trade and expedite the flow of essential goods across the country’s borders.

“We believe the government should keep global supply chain free and trade lines opened…Disruption in one part will put the whole supply chain at risk,” he pointed out.

This will mean the reversal and banning of some tariffs and quotas and address other non-tariff measures that affect goods, especially medical kits and equipment.

He is asking the authorities to “recognise the use of electronic trading documentation” such as the digitised processes at the country’s ports rolled out recently.

He hopes the government addresses challenges associated with the integrated customs management system (ICUMS) operated by UNIPASS-Ghana, which resulted in some agitations by importers.

He wants enhanced coordination that will ensure production to meet the health needs of the country as the contagion gains hold, with 153 deaths from 28,989 infections and 25,331 recoveries/discharges.

He identifies the importance of workers and urges direct and immediate incentives to vulnerable groups.

He indicates that the pandemic should not compel the government to abandon existing social interventions.

“Government-led social programmes should be maintained and expanded,” he insisted.

Cashless transactions have been identified as an essential means of operation to limit handing of bulk money and contacts in an era where social distancing is a tool for fighting the virus.