Impact Investing Ghana (IIGh), in partnership with Savannah Impact Advisory (SIA), has launched a framework aimed at unlocking domestic institutional capital for small and medium-sized enterprises (SMEs) and high-impact businesses across Africa.

The framework accompanies a summary learning report titled Unlocking Domestic Pension Capital in Africa for SMEs: Lessons from Ci Gaba, which documents the design and launch of the Ci Gaba fund-of-funds, a pioneering $75 million investment vehicle established to channel pension assets into productive sectors of the economy.

The report also provides a roadmap for regulators, pension funds, foundations, catalytic capital providers and investment managers seeking to mobilise local institutional capital to support economic growth.

According to the report, Africa holds more than $600 billion in pension assets, while SMEs and high-growth businesses across the continent face an estimated financing gap of $331 billion.

Chief Executive Officer of Impact Investing Ghana, Amma Lartey, described Ci Gaba as a model for unlocking domestic institutional funds to support inclusive economic growth.

"With over $600 billion in pension assets across Africa and a $331 billion financing gap for SMEs and high-growth potential businesses, Ci Gaba is a bold innovation that provides a pathway for domestic institutional funds to be mobilised to drive inclusive growth," she said.

"As the fund sponsor, we are proud to share lessons from our journey that can guide other African markets and to sponsor more catalytic vehicles to unlock domestic capital."

The initiative received support from several development partners and investors, including the UK's Foreign, Commonwealth and Development Office through the RISA Fund.

British High Commissioner to Ghana, Christian Rogg, said the United Kingdom remained committed to supporting efforts to strengthen Africa's investment ecosystem.

"The UK is proud to have invested in Ci Gaba and played our part to build a stronger investment ecosystem for African business. This is part of our partnership with Ghana to promote economic growth and jobs," he said.

The report highlights the role played by Ghanaian pension funds and the Pensions Industry Collaborative in developing strategies to unlock domestic institutional assets for alternative investments.

It identifies early supporters of the fund, including Stanbic Investment Management Services, Axis Pension Trust and Enterprise Trustees, whose commitments helped attract wider participation from institutional investors.

The publication also recognises the contributions of organisations such as FSD Africa Investments, Small Foundation, GSG Impact, FMO, Ford Foundation and the Argidius Foundation for supporting the development of the investment ecosystem.

According to the report, unlocking domestic institutional capital requires long-term collaboration among regulators, pension funds, fund managers, development partners and private-sector stakeholders.

Chief Executive Officer of Savannah Impact Advisory, Hamdiya Ismaila, said the Ci Gaba experience demonstrates the potential for locally structured investment vehicles to deliver both financial returns and development impact.

"Ci Gaba demonstrates that we can create vehicles that deliver strong financial returns to domestic institutional investors, and enable support to SMEs at scale for inclusive growth. This report provides a roadmap for ecosystem actors across Africa on how to achieve this," she said.

Impact Investing Ghana said the publication is the first in a planned series of reports and stakeholder engagements focused on increasing the flow of domestic capital into African businesses and strengthening local investment ecosystems.

The framework and summary report are now available to policymakers, investors and ecosystem actors seeking to expand domestic capital mobilisation efforts across the continent.