Kwabena Asante-Poku , Chris Chijiutomi, Albert Essien, Jacob Kholi, Benson Adenuga, Head of Office and Coverage Director for Nigeria, BII and Dirk Holshausen – Coverage Director for South Central Africa, BII
A new company that will provide patient and flexible local currency financing to SMEs in the country, Growth Investment Partners (GIP) Ghana, has been launched in Accra.
The company which aims to establish itself as an alternative investment option will provide SMEs with funding from US$500k to US$5m, equivalent in local currency, through flexible financing options to grow their businesses.
GIP, expected to support up to 150 Ghanaian SMEs within the next 15 years, has an anchor capital commitment of up to US$50million from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor.
Chief Executive and Investment Officer, GIP Ghana, Jacob Kholi, said the establishment of GIP will help to address a critical gap in accessing finance for SMEs by helping them raise adequate and appropriate finance required to grow.
“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,” he said.
Mr. Kholi said SMEs with turnover up to the local currency equivalent of US$15m; total assets up to US$15million in local currency equivalent; and employees of 10 to 300 are eligible to apply for funding support.
“The businesses must be incorporated in Ghana, main operations must be in Ghana, and at least 50% of its revenues must be generated from its operations in Ghana,” he added.
BII MD and Head of Africa, Chris Chijiutomi, said GIP was created as a unique and lasting solution that is not limited by typical fund investment horizons, which will enable the company to become a true long-term partner for Ghanaian businesses to fuel their growth.
“It is unique not only because it is a local currency-based vehicle backed by a DFI, but also because it is specifically designed to allow for investment from Ghanaian institutional investors, helping to expand the capital market and scale GIP’s impact,” he indicated.
He disclosed that once GIP demonstrates its success in Ghana, it will look to roll out the platform to other African countries where there is a need for long-term flexible growth capital.
GIP Board Chairman, Albert Essien, said potential investee companies of GIP must be prepared to adopt sound practices in good corporate governance, environmental, social, and sound financial management.
He indicated that BII has established a technical assistance programme, the Ghana Investment Support Programme, to provide technical support to SMEs to make them investment ready as well as eligible for post investment support.
“It is my hope that SMEs will take advantage of this unique opportunity to embrace and work with GIP in a transparent, fair, and honest manner for their mutual success,” he said.
BII Coverage Director for Ghana, Kwabena Asante-Poku, noted, “The launch of GIP in Accra is a testament both to our long-term commitment to the country and our conviction that supporting talented Ghanaian entrepreneurs is the most effective way to deliver transformative impact at scale.”
By Jamila Akweley Okertchiri