Ghana Leads Africa’s Top Economies in MSMEs’ Contribution to GDP

Must Read

Woman in South Africa Gives Birth to 10 Babies, Sets Guinness World Record

A South African mother has given birth to 10 babies in a single delivery, breaking a global record set just last month by a Moroccan woman.

Ande Dem Trainers: Senegalese Street Sellers in Barcelona Take on Nike With Own-brand Trainers

After years of selling knockoff merchandise like designer shoes, handbags etc, Barcelona’s street vendors known as Manteros have set up a co-operative and launched a line of trainers under the brand name Top Manta

Flora Nwapa: This Nigerian Was the First African Woman to Publish a Novel in English Language

Florence Nwanzuruahu Nkiru Nwapa, was a Nigerian author who has been called the mother of modern African Literature. Her book Efuru is the first book written by an African woman, to be published internationally.
Advertisement



Despite efforts by the Nigerian government to promote small and medium-sized (MSMEs) enterprises, Ghana is leading the rest of Africa in the contribution of these organisations to total output of goods and services, figures show.

Ghana leads Africa’s top economies in MSMEs’ Contribution to GDP

An analysis of the contributions of MSMEs production in five African economies showed that those in Ghana contributed more to GDP, compared to Nigeria, South Africa, Kenya, and Egypt.

According to International Finance Corporation (IFC), MSMEs account for up to 90 percent of all businesses in developing markets, and the ones operating in the formal sector contribute about 60 percent to total employment and account for 40 percent of national income in developing
economies.

The Nigeria economy expanded slightly by 1.81 percent in the third quarter of last year, according to the National Bureau of Statistics. Dikko Radda, Director-General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) said in 2018, that MSMEs operating in Nigeria are 37.1 million, while their contribution to GDP and export earnings stood are 48.7 percent and 7.2 percent, respectively.

Things seem to be auguring well for the Ghanaian economy, as GDP expanded by 7.4 percent, year-on-year in the third quarter of 2018, following a 5.4 percent expansion in the previous period. MSMEs contribute 70 percent to GDP in Ghana and account for 92 percent of businesses, data from Bank of Ghana (BoG) showed.

Africa’s second largest economy, South Africa, recorded 2.2 percent growth in GDP in third quarter of the year, up from 0.7 percent in the previous quarter. According to the South African Ministry of Trade and Industry, MSMEs account for between 52 percent to 57 percent in GDP and 60 percent in employment.

In Egypt, Minister of Finance, Mohammed Ma’it, said the achieved an increase in GDP of 5.3 percent in 2017/2018, up from an average of 2.3 percent between 2011 and 2014. In a disclosure made by the General Authority for Investment in Egypt, MSMEs account for 80 percent of all enterprises, but their contribution to GDP is below 25 percent.

©Business Day

Advertisement



Uzonna Anele
Anele is a web developer and a Pan-Africanist who believes bad leadership is the only thing keeping Africa from taking its rightful place in the modern world.

Leave a Reply

Subscribe to receive email updates

With a subscription profile, you automatically receive updates without having to return to the website and check for changes

Just In

Woman in South Africa Gives Birth to 10 Babies, Sets Guinness World Record

A South African mother has given birth to 10 babies in a single delivery, breaking a global record set just last month by a Moroccan woman.

Ande Dem Trainers: Senegalese Street Sellers in Barcelona Take on Nike With Own-brand Trainers

After years of selling knockoff merchandise like designer shoes, handbags etc, Barcelona’s street vendors known as Manteros have set up a co-operative and launched a line of trainers under the brand name Top Manta

Flora Nwapa: This Nigerian Was the First African Woman to Publish a Novel in English Language

Florence Nwanzuruahu Nkiru Nwapa, was a Nigerian author who has been called the mother of modern African Literature. Her book Efuru is the first book written by an African woman, to be published internationally.

Kenyans to Sue British Army Over Wildfire That Destroyed 12,000 Acres

A Kenyan court has allowed over 1,000 residents living near a British military training base in the country to jointly seek damages alongside an...

Wangari Maathai, First Black Woman to Receive the Nobel Peace Prize

Dr. Wangarĩ Muta Maathai was a Kenyan social, environmental, and political activist and the first African woman to win the Nobel Peace Prize.

More Articles Like This