Stakeholders across Ghana’s financial and investment ecosystem are intensifying calls for long-term, growth-oriented financing to unlock the full potential of Small and Medium-sized Enterprises (SMEs), positioning them as key drivers of economic transformation and job creation.
At an event in Accra to onboard new strategic investors into Growth Investment Partners (GIP), industry leaders emphasised that Ghana’s SME challenge is not a lack of viable businesses, but rather the mismatch between available financing structures and the growth needs of enterprises.
GIP, an investment platform backed by British International Investment, announced the addition of Norfund and Axis Pension Trustees as new investors, injecting $20 million into its capital base to support long-term enterprise growth.
The move reflects growing investor confidence in Ghana’s SME sector, particularly when supported with the right blend of capital and technical expertise.
Mr Albert Essien, Board Chairman of GIP, noted that many Ghanaian businesses fail to scale not due to lack of opportunity, but because their financing structures are not aligned with their growth trajectories.
“Too many enterprises collapse not because they lack potential, but because the type of capital they receive does not match their long-term needs,” he said.
He stressed that beyond funding, SMEs require sustained technical support, strong governance systems, and time to grow into resilient businesses.
An earlier survey conducted by GIP among over 300 businesses identified financing gaps as a major barrier to growth.
Since its establishment, the fund has deployed significant growth capital to 16 companies, largely directed toward expansion activities such as new factories, equipment acquisition, and working capital support.
These investments have contributed to job creation and strengthened business capacity, reinforcing the role of SMEs in driving inclusive economic growth.
Mr Essien highlighted a broader economic cycle where business expansion leads to job creation, improved wages, and increased pension contributions, ultimately strengthening Ghana’s financial ecosystem.
Mr Anthony Degbato of the Securities and Exchange Commission underscored the transformative potential of SMEs, describing them as critical to industrial expansion and economic diversification.
He noted that since licensing GIP as a private equity fund in 2023, the platform has focused on businesses that are often underserved, too large for microfinance institutions but too small to access traditional bank financing.
Importantly, the fund’s cedi-denominated structure helps reduce foreign exchange risks, a major concern for Ghanaian businesses operating in a volatile currency environment.
Mr Victor Azuma Mejida of the National Pensions Regulatory Authority highlighted the growing role of pension funds in financing economic development.
With pension assets now estimated at about GH¢100 billion, he said the sector is well-positioned to provide patient, long-term capital to support SME growth and infrastructure development.
Adding an international perspective, Norwegian Ambassador to Ghana, Mr John Mikal Kvistad, noted that SMEs form the backbone of economies like Norway, where few large corporations dominate.
He pointed out that Ghana’s SME sector holds similar potential but is constrained by limited access to private risk capital.
By offering tailored financing solutions such as mezzanine and royalty-based funding, GIP is helping to replicate successful models that nurture SMEs into sustainable engines of growth.
Stakeholders agreed that unlocking SME potential will require a coordinated approach combining patient capital, policy support, and capacity building.
They stressed that strengthening SMEs is essential not only for job creation but also for building a resilient private sector capable of driving long-term economic growth.
