The Policy Environment for Promoting Small and Medium-Sized Enterprises in Ghana and Malawi

This paper explores the achievements of the Small and Medium Scale Enterprise (SME) sector in Ghana and Malawi, and the roles that government, internal and external support institutions have played in promoting the sector.

The paper highlights that the SMEs in Ghana and Malawi are constrained by:

• Lack of access to international and local capital markets because of high intermediation costs;
• Insufficient supply of skilled workers;
• Limited international marketing experience;
• Poor quality control and product standardization;
• High start-up costs, including licensing and registration requirements.

The paper reviews the policies for promoting SMEs in Ghana and Malawi, and suggests that the governments should play the role of a facilitator rather than that of a regulator and should provide a conducive framework within which the sector operates.