Innovative Fund of Funds Launches in Ghana to unlock $75M for SMEs
Impact Investing Ghana (IIGh) has launched its Ci-Gaba Fund of Funds, a private sector-led initiative that aims to mobilize $75 million in local and international funding to support small and medium-sized enterprises (SMEs) and advance the United Nations’ Sustainable Development Goals (SDGs). Also, the fund, which will invest locally and across West Africa, seeks to bridge the significant financing gap that SMEs in the region face in the aftermath of the COVID-19 pandemic, the Ukraine conflict, and debt crises. According to the International Finance Corporation (IFC), the financing gap for SMEs in Africa is estimated to be over $331 billion.
Moreover, the Ci-Gaba Fund of Funds is the first of its kind in Ghana, and its creation was made possible by a grant from the UK Foreign, Commonwealth and Development Office’s (FCDO) RISA Fund. The fund will provide innovative financing vehicles that enable local capital providers to mobilize capital at scale for SMEs.
The CEO of Impact Investing Ghana, Amma Lartey, highlighted the importance of involving key local and international capital providers in the design of innovative solutions that can unlock capital for SMEs. The Fund of Funds has engaged local pension funds, foundations, international development partners, and development finance institutions in a consultative process to contribute to its design.
While Michele Bradford, the RISA Fund Team Leader, expressed delight at the commencement of the operational set-up of the Fund of Funds. Bradford said that IIGh’s initiative would strengthen the innovation ecosystem by increasing access to finance through innovative vehicles. She added that the creation of a sustainable financing vehicle that can be replicated and shared with partners across the region is exciting.
What you should know about Ci-Gaba Fund of Funds
Impact Investing Ghana is a private-sector-led initiative that builds a thriving ecosystem for impact investing in Ghana. The organization equally represents the country on the Global Steering Group for Impact Investing, which is the successor to the Social Impact Investment Taskforce established by the Group of Seven (G7).
Furthermore, the Fund of Funds will invest through local venture funds such as Mirepa, Ghana Venture Capital, and Private Equity Association (GVCA), among others.
Also, the Ci-Gaba Fund of Funds is a welcome development in Ghana and West Africa, as it will provide innovative financing vehicles to mobilize capital at scale for SMEs. Again, the fund’s launch is timely, given the significant financing gap for SMEs in the region. Also, the involvement of key local and international capital providers in the design of the Fund of Funds is essential to unlock capital for SMEs and achieve the SDGs. Finally, the RISA Fund’s support for the Fund of Funds is commendable, and it is exciting to see the creation of a sustainable financing vehicle that can be replicated and shared with partners across the region.