Growth Investment Partners (GIP) Ghana LTD, a prominent investment platform established by British International Investment (BII), has announced its latest investment in Fido Micro Credit LTD (Fido), a leading digital lender in Ghana. This strategic investment aims to enhance financial inclusion across the country, with a focus on empowering traditionally excluded populations, particularly the youth.

GIP Ghana, licensed by Ghana’s Securities and Exchange Commission, specializes in providing long-term, flexible capital predominantly in local currency to small and medium-sized enterprises (SMEs). This investment marks GIP’s second successful venture since its inception in 2023, highlighting its commitment to bridging the financing gap for Ghanaian SMEs, which are vital for sustainable economic growth.

Fido, established in 2014, has made significant strides in financial inclusion by disbursing over 3 million microloans to approximately 700,000 customers, including low-income workers, micro-businesses, and individual entrepreneurs. The company’s innovative digital loan model, which includes instant loans and the AI-powered “Fido Score,” is designed to serve customers with limited access to traditional financial services. Fido’s approach also includes financial education through its app, providing borrowers with tips, guides, and webinars to enhance their credit profiles.

Jacob Kholi, Chief Executive and Investment Officer at GIP Ghana, commented on the investment, stating, “Fido is pioneering digital financial inclusion through its innovative, data-driven lending model that efficiently and responsibly serves tens of thousands of unbanked Ghanaians. We are excited to partner with a financial institution that is harnessing technology to unlock economic opportunities for the informal sector and promote sustainable, inclusive growth.”

The investment will enable Fido to expand its reach and impact, particularly among underserved communities. Since its inception, Fido has focused on low-income individuals and micro-businesses, with over 70% of its borrowers earning less than US$150 per month and 20% living on less than US$2 per day. Notably, 40% of Fido’s loans are directed towards female borrowers.

Alon Eitan, Chief Executive Officer of Fido Solutions, expressed enthusiasm about the investment, saying, “Economic impact is crucial to us at Fido. Our mission is to make financial services accessible, and indeed, for the vast majority of our customers, it’s their first interaction with a financial institution. GIP Ghana’s support will accelerate our growth and help us reach more underserved populations, especially micro-businesses historically excluded from the formal banking sector. By combining inclusive financial services with educational resources, we are fostering economic opportunity and strengthening users’ financial capabilities and resilience.”

This investment from GIP follows a previous funding round for Ghanaian Business Processing Outsourcing (BPO) company E-Services Africa Limited (eSAL), underscoring GIP’s dedication to stimulating growth across Ghana’s SME sector.

Kwabena Asante-Poku, Coverage Director for Ghana at British International Investment, added, “As the UK’s development finance institution, our goal with GIP Ghana is to support the growth ambitions of businesses in Ghana by providing long-term flexible capital. We are thrilled that GIP Ghana’s second investment will support Fido’s expansion, a pioneering fintech company committed to extending financial services to underserved communities in Ghana.”

This investment not only underscores GIP Ghana’s role in promoting financial inclusion but also highlights the growing adoption of digital financial services in Ghana, where mobile money accounts have surpassed 22 million, with substantial transaction volumes and funds held in mobile wallets.

Source: Ghana/Starrfm.com.gh/103.5FM/Edem Kojo