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Fund for microfinance institutions established

Fund for microfinance institutions established
By Kofi AHOVI
The first ever equity microfinance fund in Ghana, Goodwell Africa Fund, was launched in Accra last week, with the aim to bridge the credit gap between the Micro-Finance Institutions (MFI) and the small and medium enterprises.
The introduction of Goodwell Africa Fund is a partnership between JCL and Goodwell Microfinance Development Company. The fund seeks to boost the capacity base of the numerous MFI by providing them with equity fund to on-lend to SMEs.
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 has a portfolio of 17 million Euros and is expected to last for a five year period before the commencement of a second phase. The fund is part of a larger US$60 million fund allocated for the microfinance investments in Ghana and Nigeria.
Launching the fund, the director of microfinance at the Ministry of Finance and Economic Planning, Kobina Amoah, said the government in partnership with other support institutions and development partners in the past has been engaged in promoting the enabling conditions that promote microfinance as a strategy for wealth creation on poverty reduction.
This support, he said, has led to the remarkable growth in the number of microfinance institutions in Ghana.
Chief Executive of JCS Investments, Patricia Safo, confirmed that three micro-finance institutions have so far been identified to benefit from the fund within the next three months, adding that more are yet to be accessed.
“We hope to make our first investments within the next three months with one in a deprived area in Tamale,” she said.
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.
JCS Investment is a social investment company licensed by the Securities and Exchange Commission (SEC) as an investment adviser. It specializes in private equity, venture capital management, consultancy and advisory services.
JCS provides a platform for businesses seeking funds, while also linking entrepreneurs with common objectives with investors seeking to expand and grow local businesses.
Goodwell Microfinance Development Company is a profit making business institution that invests in entrepreneurial micro finance institutions with the goal of creating a substantial social impact and an attractive financial return.

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