BII launches Ghana SME funding vehicle
British International Investment (BII), the UK’s development finance institution and impact investor, today announced the launch of Growth Investment Partners (GIP) Ghana. The new platform, which will be supported with a commitment of up to $50 million from BII, will provide long-term flexible capital, primarily in local currency, to small and medium-sized enterprises (SMEs) in the West African country.
SMEs occupy a critical role in the Ghanaian economy, accounting for over 90% of business enterprises, 60% of the country’s GDP and 80% of all employment. Despite their importance to the Ghanaian economy, the SME financing gap is estimated at $4.8 billion, one of the largest in Africa.
SMEs face many challenges with accessing growth capital through traditional funding sources including high interest rates, short-term loans, high collateral requirements and currency mismatches. Compounded by a challenging macroeconomic environment, influenced by the global pandemic and geopolitical conflicts, SMEs in Ghana need access to long-term growth capital and business support designed to boost their growth, create jobs and deepen their contributions to the Ghanaian economy.
The company, complemented by BII’s new technical assistance facility, Ghana Investment Support Programme, will also look to add value beyond capital by providing business support services and capacity building in areas of financial management, corporate governance and environmental and social practices, enabling the SME sector to grow in a productive, sustainable and inclusive way.
Commenting on the launch of GIP Ghana, Chris Chijiutomi, managing director and head of Africa at BII said, “BII has been a strategic partner to Ghanaian businesses for 64 years. We are thrilled to bring GIP, a unique and first-of-its-kind platform, to Ghana and we are confident that it will become a valuable and long-term partner to the country’s SMEs. Our ambition is to scale GIP across other countries in the continent where there is a need to provide long-term flexible growth capital to African SMEs.”
GIP will be run by experienced Ghanaian investment professionals with a strong track record in Africa.
Jacob Kholi, chief executive and investment officer, GIP Ghana said, “Enabling financial inclusion for Ghanaian SMEs is critical to drive economic growth across the country. With BII’s support, we hope to deliver on this ambition to unlock potential. We believe GIP will be transformative in responding to Ghanaian SMEs’ financing needs, and we look forward to supporting their ambitions to expand, innovate, and drive a sustainable, inclusive economic growth that benefits people in Ghana.”
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