The British International Investment (BII) has launched the Growth Investment Partners Ghana (GIP) to offer capital support of up to $50 million to 150 Ghanaian Small and Medium Scale Enterprises (SMEs) to address their financing needs and also deepen their contributions to the economy.

SME’s face many challenges with accessing growth capital through traditional funding sources including high interest rates, short-term loans, high collateral requirements among others.

However, the $50 million will provide long-term flexible payment within the next 15 years for businesses.

Speaking at the launch of the investment platform, Managing Director and Head of Africa at British International Investment, Chris Chijiutomi, said the support scheme will meet the financial needs of the local businesses which otherwise not available in the market.

“We’ve listened to our local partners to truly understand what is needed to address significant gaps and barriers to unlock the economic potential of Ghana. We have today launched the Growth Investment Partners Ghana with an anchor commitment of $50 million to 150 Ghanaian Small and Medium Scale Enterprises to support their growth and growth”.

Chair of the Growth Investment Partners Ghana, Albert Essien, stressed on the importance of this initiative in growing and developing the SME sector.

“It is my hope that SME’s will take advantage of this unique opportunity to embrace the work with GIP in a transparent, fair and honest manner for their mutual success. We will work hard to ensure that this innovative financing module deliver on its mandate and become an integral part of the SME financing eco-system in Ghana”.

Chief Executive of Growth Investment Partners Ghana Jacob Kholi explained the criteria for the accessing the funds, adding, “Any business that meets any two of the following criteria, it should have turnover of up-to $15 million equivalent in cedis or total assets of up $15 million dollars (in local currency) and employees of between 10-300 and their businesses must be incorporated in Ghana”.

Small and Medium Scale Enterprises occupy a critical role in the Ghanaian economy, accounting for over 90% of business enterprises, 60% of the country’s GDP and 80% of all employment.

Despite their importance to the economy, the SME financing gap is estimated at $4.8 billion, one of the largest in Africa.