To enhance financial inclusion in Ghana, Growth Investment Partners (GIP) Ghana has announced a strategic investment in Fido Micro Credit LTD, a leading digital lender.
This partnership aims to empower traditionally underserved populations, particularly youth, through Fido’s innovative digital loan model.
GIP Ghana, a local investment platform backed by British International Investment (BII), targets small and medium-sized enterprises (SMEs) with flexible, long-term capital. The investment in Fido marks GIP’s second successful venture since its 2023 launch, underlining its commitment to fostering sustainable economic growth in Ghana.
Jacob Kholi, Chief Executive and Investment Officer of GIP Ghana, expressed enthusiasm about the partnership, indicating that Fido is pioneering digital financial inclusion through its innovative, data-driven lending model that efficiently and responsibly serves tens of thousands of unbanked Ghanaians.
“We are excited to partner with a financial institution that is harnessing technology to unlock economic opportunity for the informal sector and promote sustainable, inclusive growth,” he said.
Fido has made significant strides in financial inclusion since its 2014 inception. The company has disbursed over 3 million micro loans to approximately 700,000 customers, primarily serving low-income workers, micro-businesses, and individual entrepreneurs. Notably, 70 percent of Fido’s borrowers earn less than US$150 monthly, with 20 percent living on less than US$2 per day.
The digital lender’s impact extends beyond mere loan provision. Fido’s app offers financial education resources, helping borrowers build their credit profiles and access better loan terms over time. This holistic approach aligns with GIP Ghana’s mission to support businesses deeply rooted in the local economy.
Alon Eitan, CEO of Fido Solutions, highlighted the significance of GIP’s investment: “GIP Ghana’s investment support will accelerate our growth and allow us to effectively reach more underserved populations, especially micro businesses, historically excluded from the formal banking sector.”
Ghana’s booming digital financial services sector provides a fertile ground for Fido’s expansion. With over 22 million mobile money accounts and nearly 7 billion in annual transaction volumes, the country is ripe for fintech innovation.
GIP Ghana’s investment strategy focuses on Ghanaian businesses meeting specific criteria, including local presence, revenue generation, and operating costs originating from Ghana. The platform can commit between US$500,000 and US$5 million in initial investments, with potential follow-on investments up to US$10 million.
Beyond capital injection, GIP Ghana offers strategic guidance and operational support to its portfolio companies. This includes expertise in governance, financial management, and environmental standards, leveraging a network of senior advisors and the Ghana Investment Support Programme (GHISP).
“This support is enabled by our network of senior Advisors and the Ghana Investment Support Programme (GHISP) created by British International Investment (BII). This collaborative approach ensures that investees like Fido receive the expertise and resources needed to achieve sustainable growth and long-term success,” Mr. Kholi said.
Kwabena Asante-Poku, Coverage Director for Ghana at British International Investment, emphasized BII’s role, stating, “As the UK’s development finance institution, our goal in establishing GIP Ghana is to support the growth ambitions of businesses in Ghana by providing long-term flexible capital.”
