Prioritise liquidity to survive challenges – Absa Bank tells SMEs

Absa Bank has implored small and medium scale enterprises (SMEs) to adjust their operations and prioritise liquidity to survive the current economic challenges.

The country has made good progress in restructuring its domestic debts under an exchange programme that was concluded earlier this month. Negotiations for an IMF bailout programme is also underway. However, until that is concluded, the economy continues to face challenges, evident in high in ation, a weak exchange regime and high interest rates – all unfavourable to businesses.

At an engagement session organised for its SME clients in Accra, Executive Director for Retail and Business Banking at Absa Bank, Kobla Nyaletey, said “Businesses need to survive the pre-IMF period and re-set their operations to thrive during the next phase.

Cost containment, a no-frills approach to operations and a focus on getting cash into their businesses early, will be key.”

“Liquidity is king in volatile times. Businesses that generate frequent cash, have low receivables and diversify their business models from a reliance on big ticket contracts, will survive and begin to thrive when the economic challenges recede.”

The SME clinic, attended by over 200 clients, was under the theme: “Survive and Thrive: tactics for uncertain times.” It was also the rst in-person SME engagement for the bank’s customers since the COVID-19 pandemic.

In her opening remarks, Head of SME Banking and Partnerships at Absa Bank, Audrey Abakah reiterated the bank’s commitment to creating a learning platform for SMEs to build capacity and enhance their knowledge in nan- cial management. She advised participants to also leverage customer service experience to transform their clients into net promoters for free.

As part of the engagement, the SME businesses were taken through a series of practical sessions, including liquidity management, cost line management, revenue generation and utilisation of credit lines.

The Absa SME Clinic was created to assist SMEs in gaining access to the Bank's specialised capacity-building programme, which aims to inform and assist small businesses to operate strong and sustainable enterprises. It also provides a platform for direct communication between customers and the Bank.

Societe Generale Ghana has launched its new ‘Boafo Loan Product’ in Kumasi at its Central Branch at the heart of the Adum business district. The very well patronized event held on Thursday 23rd February, had in attendance key stakeholders, customers, media, and sta of the bank.

The Boafo Loan product is a short-term working capital loan package designed to address the needs of Micro Small Medium-sized Enterprises (MSMEs). Businesses can access up to GHs 600,000.00 with a repayment period of one (1) year without the need to provide the typical collateral as is mostly required.

Welcoming guests to the launch event, Mr. Ernest Sarpong, the Deputy Head for Retail Business, stated that, “MSME’s continue to face challenges particularly with access to capital. Locally, the prevailing economic conditions further impact the sustainability of the sector especially with rising in ation and the depreciation of the Ghana cedi against the major currencies. The timely introduction of the new ‘SG Boafo Loan Product’ is to help owners of MSME mitigate some of these challenges”.

“MSMEs are the heart of the economy, and the Bank will continue to support their growth and development. SG Ghana will not only support businesses with credit facilities but specialized business products and advisory services as well,” Mr. Sarpong concluded.

SG Ghana’s Bank’s prides itself in truly understanding the needs of its customers and creating products and services that help solve the practical challenges they are faced with in their lives and businesses. The launch of this new product under the tagline “no collateral, no problem” is a perfect demonstration of the Bank’s innovation to meet the needs of its customers.

The very engaging Event, had the Retail Management of Societe Generale Ghana, responding to the