Impact Investing Ghana (IIGh) has begun the operational setup of its innovative Ci-Gaba Fund of Funds that seeks to unlock $75 million in local and international funding for local capital providers, who are investing in Small and Medium Enterprises (SMEs) to advance the Sustainable Development Goals (SDGs).
The Private sector-led fund of funds, the first domiciled in Ghana, will invest locally and across West Africa.
As economies across Africa struggle to recover in the wake of multiple shocks, COVID-19, the effects of the war in Ukraine and debt crises, SMEs across Africa continue to face a significant financing gap, which according to the International Finance Corporation (IFC) is estimated to be over $331 billion.
Innovative financing vehicles that enable local capital providers to mobilize capital at scale for SMEs are needed. A grant from the UK Foreign Commonwealth and Development Office’s (FCDO) RISA Fund will allow the Fund of Funds to set up its operations, secure anchor funders and launch.
Speaking at a training program to engage stakeholders of the Fund of Funds, CEO, Amma Lartey said innovative solutions that are designed with the key local and international capital providers whose buy-in are needed to unlock capital for SMEs is vital. “It has been a pleasure over the last year to participate in a very engaging consultative process with local pension funds, foundations, international development partners and development finance institutions to contribute to the design and we are excited to have hit this critical milestone of beginning operational setup,” she stated.
RISA Fund Team Leader, Michele Bradford said: “RISA is delighted to see the Fund of Funds commence its operational setup. Impact Investing Ghana’s initiative aims to strengthen the innovation ecosystem by increasing access to finance through innovative vehicles. We are excited that IIGH is creating a sustainable financing vehicle that can be replicated and shared with partners across our regional portfolio.”
Impact Investing Ghana is a private-sector-led initiative that builds a thriving ecosystem for impact investing in Ghana. The organisation represents the country on the Global Steering Group for Impact Investing, the successor to the Social Impact Investment Taskforce that was established by the Group of 7 (G7).
Funded by the UK Foreign, Commonwealth & Development Office (FCDO), RISA aims to strengthen research and innovation ecosystems in Africa. It is implemented in Ghana, Kenya, South Africa, Nigeria, Rwanda and Ethiopia, with the objective of strengthening national research and innovation systems. This contributes to economic growth and development.