Public Consultation on: MSME Classification Regulation, 2021

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Sponsor: Ministry of Trade and Industry

Period of Consultations: Mon October 03, 2022 to Mon November 14, 2022

Micro, Small and Medium Enterprises (MSMEs) have always played a key role in the socio-economic development of countries. In Ghana, they are also thought to be heterogeneous and varied in nature in terms of the size and structure of the units, variety of products and services, scale of production, and application of technology. Interestingly, a considerable number of MSMEs in Ghana are in the informal sector.  However, what constitutes an MSME is fast becoming a challenge. This is because the definition by various stakeholders tend to be too general to take into account the heterogeneous nature of MSMEs in the country. The multiplicity of SME definitions makes SME policy analysis, and for that matter SME policy, to virtually seem as random interventions. It is worth noting that the earliest definition and classification of MSMEs were done as far back as 1980, hence, tend to be outmoded. Interestingly, several factors account for this. It includes expansion in the size of the economy, population growth, advancement in technology, and globalization among others. It is therefore imperative to redefine and classify MSMEs to meet current economic needs. In view of this, Section 32, subsection (a) of the Ghana Enterprises Agency (GEA) Act, 2020, Act 1043, stipulates that “the Honourable Minister, shall within 12 months of the coming into force of this Act, and on the advice of the Board, by legislative instrument, make Regulations to prescribe the thresholds for Micro, Small and Medium enterprises (MSMEs)”. Also, Section 3, subsection (c) of the GEA Act also mandates GEA to “determine the criteria for the classification of MSMEs” in order to promote and develop as well as encourage the participation of MSMEs in industrial transformation. This regulation, has therefore, been developed with the view of establishing a new definition taking into consideration the need for a transparent, objective and non-discretionary criteria. In this regard, it is expected to enhance investments in technology, improve access to finance, enhance data collection and encourage MSMEs to invest in improving their competitiveness among other things.

In accordance with Section 32, Subsection (a) of the Ghana Enterprises Agency (GEA) Act, 2020, Act 1043, which stipulates that "the Honorable Minister, shall within 12 months of the coming into force of this Act, and on the advice of the Board, by legislative instrument, make regulations to prescribe the thresholds for Micro, Small and Medium Enterprises (MSMEs), the Ministry in collaboration with Ghana Enterprises Agency (GEA), accordingly formulated this MSME Classification Regulations". It is worth noting that, the Regulations were derived from the Cabinet approved MSME and Entrepreneurship Policy and mandated under the GEA Act, both of which were subjected to widespread national stakeholder consultations and approval.

Key Provisions / Thematic Areas

Preliminary Provisions

1. Purpose of the regulations is to provide the following: 
- Criteria for classification
- National definition for research activities and data collection in relation to MSMEs; and
- Compilation of a national register for MSMEs.

2. Application of Regulations
The regulations apply to all enterprises operating in the Republic of Ghana that fall within the thresholds defined in the Regulations for MSMEs.  

3. Duration of Regulations
The classification as prescribed in the Regulations may be amended by the Minister for Trade and Industry on behalf of GEA in line with paragraph (c) of Section 3, of the GEA Act, 2020, Act 1043.  

4. Criteria for Classification of MSMEs in Ghana.
This provision gives information on the criteria which determines if an enterprise qualifies to be a Micro, Small or a Medium enterprise in Ghana (Please, refer to the Regulations for detailed information).  

5. Interpretation
This provision details the meaning of key terminologies such as asset, enterprise, Medium enterprise, Micro enterprise, Minister, permanent employee, small enterprise and turnover.


We invite you to kindly bring forth your much needed comments/inputs and recommendations in view of helping shape the Draft MSME Classification Regulations, 2021 into a robust document. Alternatively, if you have “no objection”, kindly confirm in writing.

Key documents to download

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How to respond

This Consultation is Closed

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P.O. MB 47, Ministries, Accra-Ghana.