Impact Investing and Ashesi University, are partnering to launch a research report titled “Catalytic Capital Investment in Ghanaian SMEs: Strategies, Hurdles, and Outcomes” on Thursday 27th October 2022 at 11 am GMT.
This forum will present the key findings of a review of SME financing schemes set up since the Venture Capital Trust Fund Act of 2004.
Ghana has one of the highest SME financing gaps in Africa, estimated at $4.8billion with 72 percent of SMEs being financially constrained. Catalytic capital is capital that accepts disproportionate risk and/or concessionary return to generate a positive impact and enable third-party investment that otherwise would not be possible.
Unlocking catalytic capital for investments is one way to bridge the financing gap for Small and Medium-size Enterprises (SMEs) in Ghana by making available long-term financing at affordable rates and in ways that suit them while crowding-in commercial investors. The project benefited from input from a research stakeholder group which included; the Chamber of Corporate Trustees of Ghana, Ghana Securities Industry Association, Ghana Bankers Association, Ghana Venture Capital Association, Venture Capital Trust Fund, Social Enterprise Ghana, Private Enterprise Foundation, and Association of Ghana Industries.
The goal of the study is to provide insights to enable key stakeholders to mobilize catalytic capital to increase financing for SMEs for impact. The report outlines where catalytic capital has been deployed, which investors have been active, what are the roles and motivations of the investors and what market gaps still exist. It explores how the deployment of catalytic capital targeted women, youth, and other populations that have historically accessed less financing and in what ways catalytic capital investments contributed to positive outcomes compared to other forms of capital.
This report provides an evidence base to inform future workstreams and inform key actions in IIGh’s strategic plan to increase the deployment of catalytic capital in Ghana.
Join the report launch virtually on Thursday 27th October 2022 at 11 am GMT by registering here: https://bit.ly/3dYS3eI
or watch live https://youtu.be/2vNfPKakNA4
This project is made possible with generous support from the Catalytic Capital Consortium.