The Ghana Enterprises Agency (GEA) Act, 2020 (Act 1043) repealed the National Board for Small Scale Industries (NBSSI) Act, 1981 (Act 434), and the Ghanaian Enterprises Development Act, 1975 (NRCD 330).

NBSSI was originally established as the apex body for developing small-scale industries in Ghana — a non-profit public sector organisation under the Ministry of Trade and Industry, with a mandate limited to Small-Scale Industry (SSI).

Purpose of the Act

The Act provides an appropriate institutional and legal framework for coordinating and promoting programmes and projects for developing the MSME sector in Ghana.

Notable changes introduced by the Act are highlighted below — the nature of the Agency, its functions, funding, the MSME Fund, the Internal Audit Unit, and transitional provisions.

Nature of the Agency

Unlike the NBSSI, which was established as a Board, the Agency is a corporate body. This upgrade gives it legal personality recognisable by law — it can hold and dispose of property, sue and be sued, and enter into contracts in its own capacity.

Functions of the GEA

The shift in focus from SSIs to MSMEs is largely implemented through the Agency's functions, which include promotion, policy implementation, developing classification criteria, and establishing a service delivery network for the MSME sector — including facilitating MSME access to financial and non-financial resources, including credit facilities.

The MSME Fund

The GEA Act formalises low-cost funding for businesses by establishing the MSME Fund, financed by parliamentary approvals, grants, gifts, donations, and voluntary contributions, and managed by the Agency's governing board.

Funding of the Agency

Like the NBSSI, the Agency is funded by money approved by Parliament, seed money from government, internally generated funds, donations, and grants approved by the Minister of Finance. Unlike the NBSSI, the Agency can now obtain loans in its own capacity, subject to parliamentary approval and prior written approval from the Minister of Finance.

Internal Audit Unit

The Agency institutes an Internal Audit Unit headed by an Internal Auditor, appointed in accordance with the Internal Audit Agency Act, 2003. Quarterly, the Auditor prepares and submits an internal audit report to the Minister, Auditor-General, and the Chairperson of the Board.