MTN’s long game on small business, A JBA analysis

Ghana's informal sector, consisting of shopkeepers, tailors, food vendors, and tech innovators, faces significant barriers to growth due to a lack of paperwork, capital, and connectivity demanded by formal institutions. Recognizing the pivotal role these small and medium-sized enterprises (SMEs) play in the country's economy, MTN Ghana has launched its third edition of the SME Accelerate program, a year-long initiative aimed at integrating SMEs into the formal economy.

The program, announced at MTN's Accra headquarters, not only symbolizes a commitment to social responsibility but also a strategic business move.

This year's SME Accelerate focuses on extensive direct involvement from MTN, encompassing product development, financial partnerships, and setting multiyear targets within an industry historically viewed as a secondary market. The program's core offering is Yellow Biz, a subscription-based package providing SMEs with affordable internet connectivity, business email services, and website hosting.

For businesses lacking an online presence, this package bridges the gap between operating as a market stall and having a discoverable, transactable online storefront.

MTN is also tackling credit accessibility, a primary hurdle for SMEs. Through the Ajumapa product line, MTN aims to support women-owned businesses, a demographic typically facing greater obstacles in accessing formal financial and digital services. Angela Mensah-Poku, MTN's Chief Enterprise Business Officer, acknowledged that traditional banks often reject SMEs due to the absence of formal assets or documentation, viewing MTN as a preparatory intermediary that helps SMEs achieve the "bankability" status required by lenders.

In addition to connectivity and credit readiness, the program emphasizes training and certification, ensuring that SMEs possess tangible credentials to present to partners, lenders, and customers. MTN has organized fairs where participating businesses can showcase their products to consumers, providing an alternative to digital advertising for those without marketing budgets. This strategy offers immediate benefits, such as foot traffic and sales, before the broader digital and credit advantages become apparent.

Collaborative efforts extend beyond MTN, with the program involving key stakeholders such as Mastercard, which brings a payments and financial-inclusion component, and GIZ, Germany's development agency, contributing technical assistance and funding. Government bodies focused on youth employment also contribute to the coalition, indicating a multi-stakeholder approach.

By framing SME Accelerate as an ongoing, multiyear commitment, MTN positions itself as the organizer of a broader public-private initiative, leveraging partnerships to amplify the program's resources and credibility.

The significance of SME Accelerate lies in its potential to address Ghana's and Sub-Saharan Africa's broader challenge: transforming small businesses into bankable entities, thereby expanding the consumer base and driving a data-driven economy. As the program progresses over its anticipated decade, its impact on employment and economic activity will serve as a crucial indicator of whether MTN's strategy effectively narrows the financing gap or reinforces SMEs' reliance on a singular corporate ecosystem.