Growth Investment Partners (GIP), an investment platform established by British International Investment (BII), has secured an additional $20 million in funding from new investors Norfund and Axis Pension Trust, marking a significant milestone in its mission to expand financing for small and medium-sized enterprises (SMEs) in Ghana.
The fresh capital injection $15 million from Norfund and $5 million from Axis Pension Trust raises GIP’s total capital base to approximately $70 million (cedi equivalent), strengthening its capacity to support Ghanaian businesses with long-term, flexible funding.
Speaking at an event to onboard the new investors, ther Chief Executive Officer of GIP, Jacob Kholi, said the development will significantly expand the platform’s reach and impact.
“We now have additional capital to deploy, which allows us to reach more Ghanaian businesses and deepen our impact,” he noted. “This is a very important milestone for us.”
Expanding Access to Patient Capital
GIP was set up in 2023 with an initial $49.5 million investment from BII, with a clear mandate to mobilise additional local capital over time. The platform provides what it describes as “patient capital” long-term, flexible financing tailored to the needs of SMEs.
Mr. Kholi explained that the new funding not only boosts GIP’s investment capacity but also represents a blend of foreign direct investment and local institutional participation.
“This is the first step in mobilising local capital to complement our base,” he said, highlighting the strategic importance of bringing domestic investors like Axis Pension Trust on board.
Strong Deployment and Job Creation
Since commencing operations in July 2023, GIP has deployed $41 million into 16 Ghanaian companies across sectors including financial services, agribusiness, logistics, and manufacturing.
The investments have supported or sustained over 3,300 jobs, including the creation of 535 new roles within the past two and a half years.
Mr. Kholi revealed that 84 percent of GIP’s portfolio companies are black-owned or black-led, while the same proportion meets “2X” criteria—indicating strong female participation in ownership, leadership, or workforce.
Targeting More SMEs
With the additional capital, GIP plans to invest in at least 10 more businesses this year, while maintaining a long-term vision of supporting over 300 SMEs within the next 15 years.
The firm operates as an open-ended investment vehicle, allowing it to recycle capital and continuously reinvest in new opportunities.
Its SME focus targets businesses with annual turnover between $500,000 and $15 million, or with 10 to 300 employees, ensuring that funding reaches companies often underserved by traditional financing channels.
Beyond Funding: Governance and Technical Support
Beyond capital, GIP provides technical assistance to strengthen governance, financial management, and environmental and social standards within its portfolio companies.
Mr. Kholi noted that many SMEs face challenges in areas such as corporate governance and labour compliance, but GIP works closely with them to implement corrective measures and improve operational standards.
The technical assistance programme is supported by partners including Norfund, BII, and the Swiss Secretariat for Economic Affairs.
Norfund: Expanding Impact Through Partnerships
The Regional Director for West Africa at Norfund, Naana Winful Fynn, described the investment as a strategic move to broaden the institution’s impact in Ghana.
“GIP allows us to expand our reach, particularly into sectors and SME segments we do not directly invest in,” she said.
She emphasised that SMEs contribute significantly to Ghana’s economy, accounting for about 75 percent of GDP, and require tailored financing solutions.
“This vehicle provides patient, flexible capital in local currency, designed specifically for SMEs, which is critical in our context,” she added.
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