A trader using the Fido platform
Growth Investment Partners (GIP) Ghana LTD, an investment platform established by British International Investment (BII) the UK’s development finance institution and impact investor, has announced its investment in Fido Micro Credit LTD (Fido), a leading digital lender in the country.
This investment will support Fido to further enhance financial inclusion, empowering many Ghanaians – particularly the youth and populations that have been traditionally excluded, through Fido’s innovative digital loan model.
Licensed by Ghana’s Security and Exchange Commission, GIP provides long-term, flexible capital, predominantly in local currency, to small And Medium-Sized Enterprises (SMEs) to help bridge the financing gap which are critical to promoting sustainable economic growth.
This investment will empower Fido to further expand its reach to underserved segments of the population, who have limited access to traditional financial services. It is the second successful investment by GIP since its launch in 2023.
Since its inception in 2014, Fido has disbursed over 3 million micro loans to approximately 700,000 customers – primarily low-income workers, micro-businesses, and individual entrepreneurs. With its instant loans, Fido’s affordable digital credit fills a vital need for flexible, accessible financing.
The company has a strong focus on promoting financial empowerment. To this end, over 70% of Fido’s borrowers earn less than US$150 per month, with 20% living on less than US$2 per day. Additionally, 40% of loans Fido disburses are to female borrowers.
This investment from GIP builds on a previous investment in Ghanaian Business Processing Outsourcing (BPO) company, E-Services Africa Limited (eSAL), as the platform looks to stimulate growth and development across Ghana’s SME sector.
Chief Executive and Investment Officer, GIP Ghana, Jacob Kholi said, “Fido is pioneering digital financial inclusion through its innovative, data-driven lending model that efficiently and responsibly serves tens of thousands of unbanked Ghanaians. We are excited to partner with a financial institution that is harnessing technology to unlock economic opportunity for the informal sector and promote sustainable, inclusive growth.”
Chief Executive Officer, Fido Solutions Alon Eitan added,”Economic impact is crucial to us at Fido. Our mission is to make financial services accessible, and indeed, for the vast majority of our customers it’s their first interaction with a financial institution.”
Kwabena Asante-Poku, Coverage Director for Ghana, British International Investment said, “As the UK’s development finance institution, our goal in establishing GIP Ghana is to support the growth ambitions of businesses in Ghana by providing long-term flexible capital. We are thrilled that GIP Ghana’s second investment will support the growth of Fido, a pioneering fintech company dedicated to expanding financial services to underserved communities in Ghana.”
A Business Desk Report