British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, announced the launch of Growth Investment Partners (GIP) Ghana, a groundbreaking initiative aimed at providing patient, flexible local currency financing to Small and Medium-sized Enterprises (SMEs) in Ghana. Supported by an anchor capital commitment of up to US$50 million from BII, GIP seeks to address the critical financing gap faced by SMEs, which play a vital role in the Ghanaian economy.
SMEs form the backbone of the Ghanaian economy, contributing over 90 per cent of business enterprises, 60 per cent of the country’s GDP, and 80 per cent of all employment. However, despite their significance, the SME financing gap is estimated at a substantial US$4.8 billion, making it one of the largest in Africa.
GIP is designed to offer long-term flexible capital, primarily in local currency, to Ghanaian SMEs, thereby bridging the funding gap and supporting their growth and expansion. The initiative aims to provide capital in the range of US$500k to US$5m, equivalent in local currency, through flexible financing options that cater to the unique needs of local businesses, which are often unmet by traditional funding sources.
“We want to become a true long-term partner for Ghanaian businesses to fuel their growth,” said Chris Chijiutomi, MD, and Head of Africa, BII. GIP is not limited by typical fund investment horizons, making it an enduring solution for the SMEs’ financing needs.
Besides providing financial support, GIP will also offer business support services and capacity building in areas of financial management, corporate governance, and environmental and social practices. This holistic approach aims to enable the SME sector to grow in a productive, sustainable, and inclusive manner, further contributing to the Ghanaian economy.
The launch of GIP comes amidst the Foreign Secretary’s visit to Ghana, highlighting the UK’s commitment to fostering long-term economic growth in Africa. By investing in Ghanaian companies today, the UK seeks to drive mutual and future-focused partnerships, unlocking potential economic opportunities across Africa.
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GIP’s launch represents a significant step towards achieving the United Nations’ Sustainable Development Goal 8 (SDG 8) – Decent Work & Economic Growth, as it promises to create jobs, drive innovation, and empower Ghanaian SMEs to thrive in an ever-changing economic landscape.
