British International Investment (BII) has introduced a pioneering investment platform, Growth Investment Partners (GIP) Ghana, to bolster funding for Small and Medium Enterprises (SMEs) in Ghana. Backed by a capital commitment of up to $50 million from BII, GIP aims to provide patient and flexible local currency financing to SMEs, addressing the critical gap in accessing finance for these businesses, which are vital to Ghana’s economy.
SMEs play a crucial role in the Ghanaian economy, accounting for over 90 percent of business enterprises, contributing 60 percent to the country’s GDP, and employing 80 percent of the workforce. However, the SME financing gap in Ghana is estimated at a staggering $4.8 billion, one of the largest in Africa.
The new platform, GIP, will offer capital to SMEs ranging from $500,000 to $5 million in local currency, addressing the challenges of high interest rates, short-term loans, collateral requirements, and currency mismatches faced by SMEs in traditional funding sources. The goal is to support up to 150 Ghanaian SMEs within the next 15 years, empowering them for growth and job creation.
Beyond providing capital, GIP will also offer business support services and capacity building in areas such as financial management, corporate governance, and environmental and social practices. This holistic approach aims to enable the SME sector to grow sustainably and inclusively.
British International Investment has a longstanding partnership with Ghana, and with GIP, they intend to bolster long-term economic growth in the country. By investing in Ghanaian SMEs, they are not only supporting job creation but also contributing to the United Nations’ Sustainable Development Goal 8 – Decent Work & Economic Growth.
GIP will be run by experienced Ghanaian investment professionals with a strong track record in Africa, ensuring that the platform is tailored to the needs and aspirations of Ghanaian SMEs.
The launch of GIP comes at a time when Ghana’s economy is seeking resilience and growth amid global challenges, making this investment platform a potential game-changer for SMEs and economic development in the country.
Source : British International Investment