With the goal of assisting first-rate SMEs in Ghana and the Ivory Coast, Injaro Investment Advisors Limited, an investor in funds across multiple sectors, has amassed a sum of $17.5 million.
Jo When the Injaro Ghana Venture Capital Fund (IGVCF) closed at GHS 216 million ($17.5 million), a private equity fund denominated in Ghana Cedi, this was announced.
Among the institutional investors named by the firm as having contributed to the equity fund are the following: Databank group, PETRA securities, Stanbic Investment Management Services, Ghana and local pension funds, Venture Capital Trust Fund, and Minerals Income Investment Fund.
According to the company, Injaro Ghana Venture Capital Fund (IGVCF), a private equity fund denominated in cedis, was established to support successful small and medium-sized enterprises (SMEs) in Ghana’s fast-growing industries. Light manufacturing, education, healthcare, industrial services, mining support services, and food and agriculture are among the targeted industries.
Stimulating Ghana’s economy is equally important to the company’s goals, and they stress the need to safeguard the assets of the pensioners to whom the funds belong.
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If a small or medium-sized enterprise (SME) wants to apply for the fund, they need to meet certain criteria set out by Injaro. These include having been in business for three years, making GHS 20 million in revenue, and having an EBITDA of at least GHS 3.5 million ($281,055).
IGVCF will automatically buy a sizable or small percentage of the company as part of the plan. The firm went on to say that funding, sponsor buyouts, strategic mergers and acquisitions, initial public offerings, or cash flow could determine a future exit.
More About Injaro
In 2009, Jerry Parkes and Dadie Tayoraud established Injaro. Its long-term goal is to back small and medium-sized enterprises (SMEs) in Ghana so they can expand their business and boost the continent’s economy.
The investment firm has been around for 15 years, and it oversees multiple funds totalling $65 million, such as Injaro Agricultural Capital Holdings and Agri-Business Capital Fund. In addition to the three million people who have benefited from the fund thus far, the company explained that IGVCF will supply the funds needed to generate employment opportunities for thousands of people in Africa.
While ensuring the safety of the pensioners whose funds it invests, the company intends to boost Ghana’s economy and companies. To aid in the sustainable development of Africa’s economy, the firm also seeks to encourage good environmental, social, and governance practices among the businesses that make up its portfolio.
Investing in SMEs in West Africa
Many factors combine to make investing in West African SMEs an attractive prospect. First, there is a huge demand for goods and services due to the region’s expanding population, which is accompanied by an increase in urbanisation and a rising middle class. Small and medium-sized enterprises (SMEs) can meet these demands by providing novel solutions and regionally specific goods that are popular in their home markets.
Many small and medium-sized enterprises (SMEs) are quick on their feet and can easily adjust to the complicated business climate in West Africa. They are able to quickly respond to shifting market dynamics and seize new opportunities because of their adaptability.
Investment in small and medium-sized enterprises (SMEs) promotes economic growth and development by creating jobs, boosting innovation, and encouraging entrepreneurship. Investors help out underprivileged communities by bolstering these businesses, which in turn helps to alleviate poverty and empowers people economically.
Along with a wealth of unrealised potential in fields like renewable energy, technology, and agriculture, the West African region also has an abundance of natural resources. To achieve sustainable development and long-term prosperity, it is necessary to invest in small and medium-sized enterprises (SMEs) to explore and capitalise on these opportunities.
Small and medium-sized enterprise (SME) investments in West Africa can yield good profits while also helping the economy grow and making the region more inclusive.