Government in collaboration with the World Bank and National Board for Small Scale Industries (NBSSI) is set to increase the startup capital advanced to small scale businesses in the country from a previous GH¢100,000 to a new minimum of US$20,000 this year.

This is according to the Director of Business Support at the National Entrepreneurship and Innovation Programme (NEIP), Franklin Karikari who believes the move will strengthen the entrepreneurship ecosystem in Ghana.

“This new policy will go a long way to streamline the entrepreneurship ecosystem space and give the needed support. For the startups, we’ve been giving them funding ranging from GH¢10,000 to GH¢100,000 and now as part of an acceleration phase together with the NBSSI and the World Bank’s funding support, there will be a minimum of about US$20,000 to support the growth of small scale businesses for them to scale up and monitor their growth and performance along with their contribution to the economy in terms of the GDP and job creation,” Franklin Karikari explained to Citi Business News.

He further disclosed that entrepreneurs within the age bracket of 18 and 35 who are focused on green and ecological businesses will be granted a three to five-year tax waiver to boost their operations.

“Government together with Ghana Revenue Authority (GRA) has been able to provide tax breaks for startups and small-micro businesses within the age bracket of 18 to 35 and your business should be in the areas of manufacturing, ICT, horticulture, tourism and arts, medicinal planting, agro-processing and other related areas can be able to enjoy the tax break within three to five years”

In 2019, the NEIP made a case for a grant from the World Bank on the need to support entrepreneurs and small-medium enterprises in Ghana with the needed funding to ensure that start-ups get the needed interventions to scale up and to employ more people.

Following that, Ghanaian entrepreneurs are set to receive a major boost as the NEIP and NBSSI work towards accessing a US$200 million grant from the World Bank for entrepreneurs and small-medium enterprises (SME’s).

“This grant when accessed will contribute towards overcoming some of the barriers that stifles the work of entrepreneurs and small-medium enterprises in Ghana.” John Kumah, Chief Executive Officer of NEIP earlier said.