Trade ministry to launch new GEA classification and definition of MSME

The Ministry of Trade and Industry (MoTI) is set to launch the new Ghana Enterprise Agency classification and definition of Micro, Small, and Medium Enterprises (MSMEs).

This follows the passage of the Ghana Enterprise Agency (Classification of Micro, Small, and Medium Enterprises) Regulations, 2023 (L.I. 2470), and will be a key highlight of Ghana's International MSME Day activities on June 27.

Industry players and stakeholders had criticized the previous definition as outdated and impractical, especially for small and medium enterprises, as the numerical ranges no longer reflected current economic and financial realities.

According to a press statement issued by the ministry and signed by Prince Boakye-Boateng, Head of Communications and Advocacy, the new policy-based classification of MSMEs was developed to create a clear focus in government policies targeted towards MSME development. This demonstrates the Government’s strong commitment and clear vision for private sector development and entrepreneurship growth in the country. It also serves as a strategic roadmap, providing justification for the Government to allocate and commit resources for MSME and entrepreneurship development.

The revision aims to establish a clear administrative, legal, regulatory, and institutional framework that will strengthen the Ghana Enterprises Agency as the apex body, well-resourced to coordinate MSME development activities and support them with the necessary interventions.

The new classification also seeks to provide clear guidelines and the appropriate governance structure for existing businesses, prospective investors, funding agencies, service providers, financial institutions, and other key stakeholders involved in the promotion and growth of MSMEs.

Stakeholders involved in the consultation process included the Ministry of Finance, Bank of Ghana, Ministry of Employment and Labour Relations, National Development Planning Commission, Association of Ghana Industries, Private Enterprises Federation, Association of Small Scale Industries, Food and Drugs Authority, Ghana Association of Bankers, and the private sector.

The Ghana Enterprises Agency (GEA) is the apex governmental agency under the Ministry of Trade and Industry (MoTI) responsible for promoting and developing the MSME sector in Ghana. GEA is mandated to coordinate, implement, and monitor the activities of the MSME sector.

The long-term goal of GEA is to support the MSME sector to maximize its contribution to the country’s economic and social development in terms of production, income distribution, and employment. It also aims to promote closer participation and integration of women and rural communities into the national economy.

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