Professor of Economics with the University of Ghana business School GodFred Bokpin is cautioning businesses to brace themselves for challenging times at least for the next four years.

He made the assertion at the Access Bank – Graphic Business SME Clinic and Fair held at the Prempeh Assembly Hall in Kumasi on the theme “Running Sustainable Businesses in a Challenging Landscape.”

This prediction comes at a time global supply chain bottlenecks, hyperinflation coupled with a general economic slowdown has adversely struck a wide streak of businesses on the back of the COVID 19 Pandemic and the Russia Ukraine War.

Before companies would be allowed a breather, governments debt overhung and wobbly macroeconomic indicators forced the country into an IMF program with its attendant conditionality’s.

Businesses are now bearing the brunt of huge national expenditure cuts, austere tax regimes and a hike in cost of production occasioned by an upward review in Utility Tariffs

Prof. Bokpin pointed out, “What the IMF supported government program seeks to do is to restore macroeconomic stability but if you look at the program, it will not come without a cost to households and businesses.

“It is important to take notice of the level of fiscal adjustments in terms of taxes, and adjustments in utility tariffs. There are other measures in the program that are expected to affect businesses negatively. But the biggest question is what is it that government can do to reduce the burden and also anchor the gains in a sustainable manner,” he questioned.

With more austere measures expected to kick in over the period of the Breton Woods supported Program, Professor Bokpin believes the business environment will be held to some rough head winds before things start to get better.

Offering some hope to businesses however, He noted, “There is no point in giving up. We will have to find a way of navigating these hard times because it is not going to disappear next year nor two years from now. It is going to exist for the next four five years.”

Hundreds of entrepreneurs drawn from Small, Medium and Micro Businesses in Kumasi responded favorably to the discussions of these harsh exposures as they participated and took turns to ask questions.

Prof Godfred Bokpin indicated that such business conferences provided a potent platform to equip business owners and managers with the knowledge required to build the right structures to keep afloat.

“Knowledge is important in challenging times like this. You want to control cost and you would want to prioritize and make sure that the limited profits that you make, you plough it back. That’s a cheaper way of expanding your business rather than going for external financing.

Head of the SME and Support Unit of Access Bank Ghana, Eugenia Addo said the bank had taken notice of the need to build resilience of the SME fold who contribute more than 80% of the country’s revenue base.

“We began this journey some three years ago after COVID struck and affected the SMEs the most. As a bank, we decided to intentionally support them with capacity, expose them to the market, help them grow and tweak some of our financing products to provide up to 200,000 in collateral free loans just for SMEs,”

The Association of Ghana Industries which was ably represented at the business clinic and fair made a passionate appeal for business to business synergies that portend shared benefits. Ashanti Regional AGI Manager Thompson Appam Attebila pointed out that the AGI continues to engage government as interest rates and other costs of doing business in Ghana continues to get uncompetitive especially at a time Ghana is expected to compete on the African Continental Free Trade Area (AfCFTA).

The Access Bank – Graphic Business collaboration has won reputable SME awards for the bank; extended business advisory solutions to a hundred and seventy thousand SMEs and offered a portfolio of 504 million cedis in instant loans; a third being collateral free.

The fair afforded a hundred and fifty companies, the opportunity to join a three day exhibition for free on the premises of the Prempeh Assembly hall THE SMEs were the hardest hit

By: Ivan Heathcote – Fumador.