A fully-owned Ghanaian company, Ghana Growth Fund Company Limited (GGFC), is targeting to build a sub-Saharan private equity firm to strengthen and build the capacities of Small and Medium Enterprises (SMEs), support infrastructural development and introduce commodities for accelerated sub-regional development.
In this regard, it is working across the sub-region, particularly Sierra Leone, Cote d’Ivoire and Liberia, to partner companies or industries that have higher future potential as well as explore business opportunities.
As a first point, the GGFC has acquired the Liberia Enterprise Development Finance Corporation (LEDFC), a non-formal banking firm, to transform SMEs in the Republic of Liberia.
Throwing some light on the partnership deal, Mr Kwame Ofori Asomaning, Managing Director of GGFC, said they would use LEDFC to transform SME marketing in Liberia, finance infrastructural projects and support real estate development.
Concerning infrastructure, he said they were looking at pre-financing roads, building bridges, boreholes, schools and landfills.
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He said it was the belief of GGFC that it was only the people living within the West Africa sub-region who could build their region through contracts and infrastructural financing.
“We need to grow and groom our local contractors as well as build their capacities,” he stated.
He said GGFC was ready to give them financial literacy and construction financing, and provide project management skills with funding to the SMEs.
He said GGFC was in Liberia because of the great potential of the country and would do everything possible to turn around the companies in Liberia for superior returns and positive social impact and bring equity to everybody.
He said the GGFC had a track record of handling and pre-financing diverse projects, which range from feeder and urban road construction to school projects, for local contractors.
According to a press release at a ceremony in Monrovia, the capital of Liberia, to transfer LEDFC to GGFC, the Chairman of Groupe Nduom, Dr Papa Kwesi Nduom, said the group of companies viewed Liberia as part of the process to create a Liberian-Ghanaian-American company for a long-term operation that would benefit all parties involved.
He said that the GGFC was in Liberia to contribute to the growth of the Liberian economy, as well as to support the private sector.
The US Ambassador to Liberia, Deborah Malac, according to the release, reaffirmed the Overseas Private Investment Corporation of the United States (OPIC) support to small and medium-size enterprise sector of the Liberian economy to enhance the transition of the Liberian Enterprise Development Finance Company and international (global) communities to the GGFC.
LEDFC began operations at a difficult time for the Liberian economy after the end of its civil conflicts and when there was no source of debt capital for the small and medium-size enterprises in the market.
Story: Kobby Asmah