Ghana: 1st Private Equity Micro-Finance Fund Launched

Ghana, March, 03 2010 - Social investment firm, JCS Investments say plans are underway to make the initial investment of the first Private equity Micro-Finance Fund in Ghana before the end of the second quarter of this year.

The fund is targeted at micro-finance start-ups and growth-phase Micro Finance Institutions to capture growth opportunities and help create new distribution channels. 

The fund dubbed “The Goodwell Africa Fund” which was launched on Tuesday, March 2nd was established through a partnership between JCS Investments and international microfinance development company, Goodwell.

The fund of 20 million Dollars which is meant to boost Micro-Finance delivery in the country is part of a larger fund of 60 million dollars allocated for the Microfinance investments in Ghana and Nigeria.

The Chief Executive of JCS Investments, Patricia Safo told Citi Business, three micro-finance institutions have so far been identified to benefit from the fund within three months time, adding that this limited number is due to some practical challenges of such pursuits.                                                                                     

“We are working closely with about three institutions but there is a limitation because of the capacity with which you can operate at each point in time and through the vigorous diligence you engage with the customer at anytime, the investments can also fall apart”, she noted.

“We hope to make our first investments within the next three months with one in a deprived area in Tamale to serve a lot of deprived people”, she added.

She said they are however positive this first equity-fund would be successful for some more to be made available to the microfinance industry.        

“This is the first fund we’ve raised and we are hopeful that once this fund is totally invested, there will be an opportunity to raise additional money for the sector”, she noted.

“This is the beginning and we believe there is going to more happening at the sector, she added.

The equity Fund was launched in addition two other initiatives “Raising funds for African Businesses” and the Micro Finance Institutions Directory for Ghana.