Promoting partnerships between
Ghanaian SMEs and German Businesses

The contribution of Small and Medium Enterprises (SMEs) to economic development and employment at the world stage cannot be overemphasized. As a result, it's no surprise that most governments have leveraged the SME sector as a strategic driver for sustainable and inclusive growth in recent years.

According to the World Bank (2018), SMEs account for about 90 per cent of businesses and more than 50 per cent of employment worldwide. Formal SMEs contribute up to 40 per cent of national income (gross domestic product) in emerging economies, and even higher when informal SMEs are included.

In Ghana, SMEs represent over 85 per cent of the business population and contribute about 70 per cent of the gross domestic product according to the International Trade Centre (ITC). However, investment barriers and lack of capacities often undermine their participation in regional and global markets, stifling their growth.

That’s why, through the Ghana-Germany SME Training and Exchange Programme, 60 Ghanaian SMEs with growth potential were chosen to receive support through capacity-building as well as matchmaking opportunities with German businesses. The ultimate goal of the programme was to enhance their readiness to compete in regional and global markets.

Implemented and managed by COGNOS International with the support from Invest for Jobs, the Ghana-Germany SME Training and Exchange Programme was launched in November 2020. With the aim of promoting business-to-business (B2B) linkages between Ghanaian SMEs and European (mostly German) companies, the 60 beneficiary SMEs were selected from sectors with high export and/or business development potential.

The chosen SMEs were grouped into three cohorts with 20 companies each, from the following sectors:

• Cohort 1: Agri-processing, Cosmetics, and Shea Nut Processing
• Cohort 2: Wood Processing and Furniture Production
• Cohort 3: Garment, Textile and Fashion

To achieve its goal, the Ghana-Germany SME Training and Exchange Programme employed a three-pronged approach. For the first phase, a two-week intensive training workshop was organised in Ghana on various topics such as international business, marketing, financial planning, and leadership, tailored to the needs of each cohort. The second phase included a two-week business trip to Germany for company visits, exchange of best practices, and B2B meetings with German businesses. The third phase consisted of a joint workshop with all three cohorts, an exhibition event, and follow-up coaching.

The Ghana-Germany SME Exchange Programme concluded successfully in December 2022, following the full implementation of all activities for with the three cohorts. In total, 60 SMEs participated in a structured exchange programme that combined tailor-made trainings, workshops, and international exposure designed to strengthen their business models and market access.

Participants such as Nathaniel Adajagsa, Team Leader at Kente Master (Cohort 3), a company specialised in crafting kente pieces and products, testified to the programme’s transformative effect: “The training greatly improved our capacity to enhance our business model to embrace diverse cultures and creatively expand sustainably.”

Business trips to Germany were organised for all three cohorts. The 20 Ghanaian agri-SMEs engaged directly with German companies and institutions. These included visits to companies like: Herzapfelhof, an apple farm, Lebensmittelinstitut KIN e.V., a food institute that runs a modern pilot plant and an accredited laboratory, DEULA-Nienburg GmbH, an international training, research and testing center with a focus on agriculture, and the trade fair Fruit Logistica in Berlin.

The second cohort visited carpentries such as Hamburger Moebel that produces high-quality furniture; Hansa Complet Küchen, a kitchen retail company; Felder Group, a woodworking equipment manufacturer from Austria; WOB Timber, a family business in international timber trade that imports from Ghana; and Gsechs, a vocational training school for carpenters.

The textile and fashion companies of the third cohort visited, among others, Akademie Mode and Design – University of Applied Sciences for Fashion and Design to exchange with management and students. They visited various fashion brands to explore export opportunities. A pop-up expo was also held in Berlin where the SMEs exhibited their products.

As part of the project’s third phase, a joint workshop and product exhibition was held in Accra in August 2022. These events created a platform for the Ghanaian SMEs to expand their networks, showcase their products, and build strategic business partnerships.

Overall, the project supported participating enterprises in enhancing their competitiveness and readiness for global markets, resulting in increased business orders, revenue growth, and the creation of 240 new jobs, including 108 for women and 96 for youth between 15 and 24 years of age.

The Ghana-Germany Exchange and Training Programme was supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH as part of the Special Initiative "Decent Work for a Just Transition" on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).