Rev. Daniel Ogbamey Tetteh
The Securities and Exchange Commission of Ghana (SEC) and the United Nations Capital Development Fund (UNCOF) yesterday launched comprehensive guidelines for equity and investment-based crowdfunding in Ghana.
The guidelines, developed in collaboration with key stakeholders and following extensive consultations and technical assistance support from Lelapa African FinTech Advisory, mark a significant milestone in Ghana’s financial and investment landscape.
The guidelines aim to unlock the potential of crowdfunding as a viable financing option for Micro, Small, and Medium Enterprises (MSMEs) and startups in the country while ensuring investors’ protection, providing a regulatory framework and addressing critical gaps that have hindered the growth of the entrepreneurial community.
The guidelines encompass a wide range of entities, including crowdfunding intermediaries, companies seeking to raise funds, and foreign entities interested in operating crowdfunding platforms in Ghana.
In his remarks, the Director-General of the SEC, Rev. Daniel Ogbamey Tetteh highlighted the significance of the guidelines for the capital market. “In Ghana, we have witnessed the transformative power of crowdfunding in various sectors; from agriculture to healthcare, entrepreneurs have harnessed the collective strength of the crowd to bring their ideas to life.
“However, the absence of a clear regulatory framework has limited the full potential of this innovative financing model. The guidelines we launched today are designed to change that. They provide a robust framework that protects investors, ensures transparency, and fosters trust in the crowdfunding ecosystem. By establishing clear rules and standards, we are creating an environment where both investors and fundraisers can thrive.”
UN Resident Coordinator, Ghana, Charles Abani, on his part, indicated that Ghana remains among the pioneers in the region and continent when it comes to financial innovation, stressing the launch of the crowdfunding guidelines confirms this vision and ambitions.
He said crowdfunding has played a pivotal role in other countries to connect individuals with investment possibilities with other individuals with financing gaps to expand their business.
“Ghana’s estimated finance gap is 43 billion a year between now and 2030. We must explore this innovative mechanism that mobilises resources from a broader base crowdfunding with its ability to democratise finance and empower individuals to contribute to courses they believe in. Crowdfunding is one such mechanism as it can help finance projects that drive economic growth, social inclusion and environmental sustainability,” he said.
Technical Lead, UNCDF, Arianna Gasparri, remarked, “On behalf of UNCDF, we are very happy to have worked with SEC in contributing to the future of investments and innovative channels for supporting MSMEs in Ghana. UNCDF is indeed meant to work with government and government agencies to assist with the favourable conditions to crowd-in private capital.”
BY Prince Fiifi Yorke