German Development Cooperation completes Impact Investment Support to strengthen Ghana’s SMEs

German Development Cooperation and Innohub Foundation have completed the Ghana SME Impact Investment Support (GSIIS) Project, an initiative aimed at fostering sustainable economic growth and creating decent jobs within Ghanaian SMEs.

The closing event marked the culmination of two years of varied technical support to over 20 small and medium-sized enterprises (SMEs) from various sectors in Ghana.

This project was a significant step in addressing the SME financing gap in Ghana. SMEs represent over 80% of businesses in Ghana, yet they face substantial challenges in accessing finance, which hampers their growth and ability to create jobs.

According to the World Bank, an estimated SME financing gap of USD 4.8 billion exists in Ghana. By providing targeted support and resources, the GSIIS project has contributed to mitigating these barriers and promoting a more vibrant SME sector.

During the project period, the GSIIS project provided targeted pre- and post-investment technical assistance to the selected SMEs, addressing critical areas such as marketing, e-commerce, financial management, human resources, process optimisation, resource efficiency, and health & safety.

This comprehensive support model combined private capital injection of almost 3 million Euros from impact investors with tailored technical assistance, ensuring long-term sustainability and growth for the participating companies.

Ghana has witnessed a steady increase in impact investments into SMEs, with funds focusing on the innovative potential and sustainability efforts of local businesses. The GSIIS project has played a pivotal role in bridging the resource gap that often hinders SMEs from achieving their growth objectives.

By equipping these businesses with tailored technical support and expertise, the project has not only enhanced their operational capabilities but also contributed to the broader goal of economic development in Ghana.

Ms. Eunice A. Agyepong, the Head of the SME Component of Invest for Jobs at GIZ Ghana, reflected on the project’s journey: The GSIIS project has demonstrated the power of combining financial investment with technical assistance.

This dual approach has ensured that the supported SMEs are well-prepared to thrive and contribute positively to Ghana’s economy. We are proud of the achievements and the lasting impact this project will have on the local business landscape. She also called on other stakeholders to join in the investment support for SMEs.

Mr. Nelson Amo, Executive Director of Innohub, remarked: “The GSIIS Project has demonstrated the unique value of combining pre- and post-investment technical assistance with catalytic capital. This integrated approach equips SMEs with the clarity, structure, and operational strength they need to scale sustainably.

At Innohub, initiatives like GSIIS sit at the core of our belief that when development partners, investors, and business support organisations work together, we can build high-growth, investment-ready businesses that drive meaningful economic transformation. We are proud to have contributed to this ecosystem effort.”

The GSIIS project is part of the Special Initiative “Decent Work for a Just Transition”, operating under the brand Invest for Jobs, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).

As the project concludes, GIZ and Innohub Foundation remain committed to exploring further opportunities to support Ghanaian SMEs and drive sustainable economic growth.

The post German Development Cooperation completes Impact Investment Support to strengthen Ghana’s SMEs appeared first on The Business & Financial Times.

Read Full Story