Lack of right finance, a challenge to SMEs – Oti-Mensah
The Managing Director of OmniBank, Philip Oti- Mensah has dismissed assertions that SMEs continue to face lack of finance to propel their growth. Rather, he described the situation as absence of the right type of finance to help them grow.
According to him, the narration on access to finance should be absent because of the presence and capacity of numerous financial institutions in the country. Conversely, he noted that the problem facing the SME sector was rather a matter of getting access to the right type of finance to guarantee their growth.
He said, “We have over 500 microfinance institutions, over 30 banks and savings and loans as well as over 150 rural banks. When you are an SME looking for a loan you will get it but at what prize and package? The challenge is access to the right type of finance.”
He advised financial institutions to create the right access to low cost finance for SMEs. He said, that it will enable them maintain stability through sustainable and low cost finance from financial institutions.
Whilst highlighting the efforts of OmniBank’s capacity building SME clinic and the provision of majority of its loan portfolio to SMEs, he encouraged other financial institutions to initiate measures to take the responsibility of providing the right access to funds.
Philip Oti- Mensah was speaking at the International SME Business Network Meeting held in Accra. It was under the theme, “Facilitating Economic Growth of SMEs through Global Partnership.
The event brought together key government and private industry stakeholders to discuss issues pertaining to the growth of SMEs.