40 million Euro for Nigerian and Ghanaian microfinance institutions
A joint venture by Goodwell Investments from The Netherlands, Alitheia Capital of Nigeria and JCS Investments from Ghana launches a EUR 40 million Euro fund for the two West African countries.Goodwell West Africa, a business development company based in the Netherlands, has received commitments of EUR 8 million from the German development bank KfW Entwicklungsbank (KfW), and EUR 1.6 million from Norwegian Microfinance Initiative (NMI), Syminvest reports. The money will be invested in microfinance institutions in Ghana and Nigeria. The fund will provide long-term capital and active support to start-up and growth phase microfinance institutions in both countries to kick start and accelerate their growth and build value whilst maintaining their social focus.
Findings from a recent study by Goodwell, Alitheia and JCS showed a tremendous potential for expansion, but also challenges such as inadequate financing, shortage of skilled personnel and effective business models.According to the Consultative Group to Assist the Poor (CGAP), 75 percent of Nigerians do not have a bank account, with the numbers being even lower in Ghana, where only 5 percent of the population has access to formal financial services.