By Konrad K. Djaisi
The Securities and Exchange Commission (SEC) and United Nations Capital Development Fund (UNCDF) this week launched comprehensive guidelines for equity or investment-based crowdfunding.
The guidelines, developed in collaboration with stakeholders following extensive consultations and technical assistance support from Lelapa African Fintech Advisory, mark a significant milestone in the country’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 start-ups in-country while ensuring investor protection, providing a regulatory framework and addressing critical gaps that hinder the entrepreneurial community’s growth .
Director-General of SEC, Rev. Daniel Ogbamey Tetteh, highlighted the guidelines’ significance to the capital market.
“As we unveil these guidelines, we are not only addressing the financing gap faced by MSMEs and start-ups but also ushering in a new era of financial inclusion that aligns with the National Financial Inclusion and development Strategy and making capital markets more accessible to all Ghanaians.”
UNCDF, with its unique investment mandate to crowd-in various flows of finance toward development, played a central role in driving the development of these guidelines. Through the GrEEn Project funded by the European Union’s Trust Fund for Africa, EU-TF, UNCDF has been at the forefront of pioneering crowdfunding in Ghana.
Technical Lead-UNCDF Arianna Gasparri indicated her outfit has been privileged to have worked with SEC in contributing to the future of investments and innovative channels for supporting MSMEs.
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 the country.
They prioritise investor protection while encouraging crowdfunding for social and environmental impact projects. The guidelines’ launch has the potential to unlock significant growth opportunities and empower Ghanaian businesses by enhancing access to finance, promoting financial inclusion and fostering sustainable finance practices.
The United Nations Resident Coordinator, Charles Abani, observed that crowdfunding has played a pivotal role in other countries by connecting individuals with investments possibilities.
