Growth Investment Partners (GIP) Ghana has announced an investment in Fido Micro Credit LTD (Fido), a leading digital lender, to expand financial access and drive inclusion for underserved communities in Ghana, especially women-owned businesses.
Jacob Kholi, Chief Executive and Investment Officer at GIP Ghana, stressed the importance of this investment in supporting Ghana’s informal economy. He remarked, “Fido is pioneering digital financial inclusion through its innovative, data-driven lending model that efficiently and responsibly serves tens of thousands of unbanked Ghanaians.”
Kholi also noted that 90% of Fido’s customers had no prior credit history before joining the platform, and 40% use credit for business purposes like expansion or stock renewal, which underlines Fido’s crucial role in empowering small businesses, particularly those led by women.
Since its inception in 2014, Fido has provided over 3 million micro-loans to around 700,000 customers, with a focus on low-income workers, micro-businesses, and individual entrepreneurs. Fido’s affordable, instant digital loans address a crucial need for accessible financing, offering flexibility for underserved populations.
Fido’s mission is deeply rooted in financial empowerment, with over 70% of its borrowers earning less than US$150 per month, and 20% living on less than US$2 per day. The company also prioritizes gender inclusion, with 40% of its loans going to female borrowers. Through its app, Fido equips users with financial tips, guides, and webinars to help them build their credit profile, qualify for larger loans, and secure better rates over time, further enhancing their financial stability and resilience.
Fido’s CEO, Alon Eitan, emphasized the company’s mission to make financial services more accessible, stating, “For the vast majority of our customers, it’s their first interaction with a financial institution. 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.”
The funding will also enable Fido to scale up FidoBiz, a specialized credit product for small and micro-entrepreneurs who typically face difficulties securing funding from traditional banks due to lack of collateral or required paperwork. Fido’s model offers quick, hassle-free access to credit, and Eitan believes coupling financial services with education will create even greater impact: “By offering inclusive financial services alongside financial education, we are fostering economic opportunity while also strengthening users’ financial capabilities and resilience.”
Growth Investment Partners (GIP) Ghana is a pioneering investment platform designed to bridge the financing gap for small and medium-sized enterprises (SMEs) in Ghana. It provides patient, flexible capital, primarily in local currency, to support the growth of SMEs, which are crucial to the country’s economy. SMEs account for over 90% of businesses and contribute about 60% of Ghana’s GDP, yet they face significant challenges in accessing affordable and long-term financing.
Launched with a US$50 million capital commitment from British International Investment (BII), GIP Ghana addresses the pressing need for long-term capital that can help businesses expand, create jobs, and drive sustainable economic growth. The platform also provides business support services to help SMEs strengthen their financial management and corporate governance, boosting their ability to scale.
Kwabena Asante-Poku, Coverage Director for British International Investment, also expressed enthusiasm about GIP’s investment, commenting, “We are thrilled that GIP Ghana’s second investment will support the growth of Fido, a pioneering fintech company dedicated to expanding financial services to underserved communities in Ghana.”
This strategic investment sets the stage for Fido to drive further economic empowerment across Ghana’s informal sector, unlocking new growth opportunities for many entrepreneurs.
