MIIF boosts local content with strategic SME investments

By Ernest Bako WUBONTO  

The Minerals Income Investment Fund (MIIF) is boosting local content in the mining industry by investing in small and medium-sized businesses that support the sector, driving growth and development.

During a recent working visit to three of the four companies benefitting from MIIF’s investment through Injaro Ghana Venture Capital Limited (IGVCF), Acting Chief Executive Officer Justina Nelson highlighted the fund’s commitment to investing in viable enterprises and empowering local businesses.

She stated that the investments made in these businesses have been instrumental in their growth, helping them become major players in their respective industries and expand into new markets.

“The funds we are investing in these companies belong to the state, so we expect to see good returns on investment for the citizens, who are the shareholders. We will discuss in the boardrooms and identify areas that need improvement,” she said.

MIIF’s investment in Injaro Venture Capital Fund aims to provide essential capital to high-potential SMEs, especially those operating within the mining value chain.

“Our collaboration with Injaro demonstrates our commitment to local economic empowerment. We invested in Injaro; and in turn, it has invested in three indigenous enterprises. The onus is on us to monitor the performance of these funds; we expect these investments to transform Ghanaian SMEs into competitive players not just locally, but across Africa and beyond within the next 10 years,” she stated.

Injaro Investments, a multi-sector fund registered under Ghana’s Securities and Exchange Commission, has strategically allocated MIIF’s funds into three key businesses: Zeepay Ghana Limited, Kofa Technologies and DDP Outdoor Limited.

These companies were selected based on their alignment to offer services to the mining sector and their potential to leverage local resources for expansion and job creation.

Jerry Parkes, Chief Executive Officer of Injaro Investments, noted the importance of funding for SMEs in the capital-intensive mining sector.

“The mining industry requires substantial investment; and with Ghana’s local content policies, there is a significant opportunity for indigenous businesses to thrive if they have access to funding,” Mr. Parkes stated.

Visit to Zeepay Ghana Limited

Mrs. Nelson and her team visited Zeepay, a leading Fintech company specialising in cross-border remittances and forex solutions—critical services for mining firms that extensively deal in foreign currency transactions.

In 2023, Injaro made an equity investment of approximately US$2million in Zeepay. MIIF’s investment in Zeepay strengthens Ghana’s financial ecosystem, enabling smoother international trade and remittance flows.

She expressed concerns about Zeepay’s performance in 2024 but was impressed with the expansion plans and prospects as outlined by the CEO, Andrew Takyi Appiah.

The CEO indicated that the company is seeking an additional US$100million equity investment to finance its multi-country expansion efforts and deepen its market share in these new markets.

DDP Outdoor Limited: Enhancing mining sector visibility

As an advertising agency with exclusive rights to Kotoka International Airport’s Terminal Three, DDP Outdoor provides branding and marketing services to mining companies.

This investment not only supports the local advertising firm but also enhances the visibility of Ghana’s mining sector to international investors.

General Manager of DDP Outdoor Limited, Senah Vuley, congratulated the newly appointed acting CEO of MIIF, expressing gratitude to the fund for its investment in the business to support its growth.

Kofa Technologies: Pioneering clean energy solutions

With Ghana’s recent discovery of lithium, MIIF’s investment in Kofa Technologies company aims to enable it grow and source the lithium locally for battery production.

Kofa Technologies is revolutionising mobility and energy storage with its lithium-based battery solutions. As a green transition firm, it provides alternative lithium chargeable batteries for electric motorcycles and home use.

The newly appointed acting CEO of MIIF is on a mission to familiarise herself with all businesses that the fund has invested in or has shares in.

The CEO expressed satisfaction with the performance of the fund portfolios, indicating that such impressive outlooks will yield good returns on investment and encourage the fund to diversify and invest more in these companies.

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