Open Letter: Revisiting the use of US dollars in MSME Policy classification

By Isaac Frimpong (Ph.D.)

Ghana’s micro, small, and medium enterprises (MSMEs) are the backbone of our economy. Yet our national MSME policy still categorises them by using US dollars rather than the Ghanaian cedi.

While the original idea may have been to minimise the impact of exchange rate fluctuations and provide international comparability, this raises a critical question: Should a sovereign country rely on another nation’s currency to define its economic policy?

The Bank of Ghana has reminded businesses to quote all prices in cedis, a point reiterated by the Governor, Dr Johnson Asiama. If national monetary policy insists on cedi-based pricing, then our MSME policy should also reflect this principle. Grounding the framework in our local currency strengthens policy sovereignty and makes compliance more practical for Ghanaian businesses.

Current MSME Classification (USD)

Category	Investment (USD)	Annual Turnover (USD)	Employees
Micro	< $25,000	< $25,000	1–5
Small	$25,001–$100,000	$25,001–$1,000,000	6–30
Medium	$100,001–$3,000,000	$1,000,001–$3,000,000	31–100

Proposed MSME Classification (GH? )

This ensures that classification is anchored in the national currency, with regular reviews (every two or three years) to account for inflation and exchange rate changes.

Category	Investment (GH?)	Annual Turnover (GH?)	Employees
Micro	< GH? 300,000	< GH? 300,000	1–5
Small	GH? 300,001–1,200,000	GH? 300,001–12,000,000	6–30
Medium	GH? 1,200,001–36,000,000	GH?12,000,001–36,000,000	31–100

Since MSMEs already transact in cedis, aligning policy with their reality makes compliance easier. For foreign investors, conversion becomes straightforward, as it is done in other markets.

At the same time, Ghana’s vision for a 24-hour economy makes it even more urgent to revisit the MSME classification framework. A round-the-clock economy depends on stronger domestic production, reduced dependence on imports, and a shift toward exports. Reclassifying MSMEs in cedis is part of this reset agenda. It empowers entrepreneurs and positions them to take advantage of new opportunities in regional and global markets.

Beyond MSMEs, Ghana should extend this principle to other areas, including how we report external debt and official accounts. Quoting everything in cedis reinforces confidence in our economy and reduces the over-dependence on foreign benchmarks. It is time for Ghana to believe in its currency. Revising the MSME classification to cedis is not just a practical adjustment; it is a clear statement of our national pride.

Isaac is a Researcher and Consultant
[email protected]

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