Usawa Venture Capital has invested the sum of $100,000 in local fintech Logiciel Ghana Limited, in an equity deal.
The investment aims to set the stage for follow-on capital to fuel the company's growth.
Logiciel Ghana Limited has the largest microfinance banking software platform in Ghana, powering the operations of over 280 financial institutions in the country.
Logiciel’s clients include microfinance institutions, credit unions, savings and loans companies, as well as, universal banks in Ghana and Nigeria.
Usawa Venture Capital is a joint venture between 3nity Global, an investment advisory firm in Luxembourg, and Gold Coast Partners in Accra.
Director of Usawa Venture Capital, Dr Mike Nkansah said the deal was a bet on the growth of the African fintech industry.
He noted the need for government to develop policies and incentives to support Upcoming tech firms like Logiciel.
Commenting on the transaction, Kabanga Michel Kayembe, founder of 3nity Global, praised the firm’s commitment to reaching the over 2 million financially underserved individuals impacted through its platform.
CEO of Logiciel Derrick Dankyi expressed appreciation for the investment.
He indicated that technological solutions to microfinance institutions will go a long way to improve financial services among the unbanked population as well as check the cost of credit.
He said when the microfinance institutions are able to check their data and have better records they are able to maintain strong balance and businesses in general.
With the new arrangement, businesses will become more attractive to investors and with the availability of funds from investors, banks can reduce the cost of lending.
Co-founder and CTO of Logiciel, Farida Bedwei stressed the need for more investment in the Ghanaian tech sector.
She explained that investments into the tech sector will create a lot of jobs for the youth and further improve the economy.
The Usawa fund is an impact investment vehicle that invests money in SMEs operating in the agribusiness, financial services and healthcare sectors in West and Central Africa.