New Ci Gaba fund targets SME growth

By Buertey Francis BORYOR

The Ci Gaba Fund of Funds, a private investment vehicle targetting small- and medium-sized enterprises (SMEs), has been launched in Accra.

The fund – managed by Savannah Impact Advisory – is the country’s first privately managed fund of funds, expected to channel capital into businesses through intermediary venture capital and private equity funds operating across multiple sectors of the economy.

Chief Executive Officer-Savannah Impact Advisory Hamdiya Ismaila said launching the first close marks the fund’s entry into the market and beginning of its capital mobilisation drive.

“We are now open for business. We are in the market to raise a billion Ghana cedis. Today we are closing at GH₵380million,” she said during a post-event media engagement in Accra.

She said the Ci Gaba Fund will not invest directly in businesses but instead allocate capital to smaller, specialised funds that are closer to enterprises within specific sectors such as agribusiness and technology. She explained that this structure enables the fund to operate as a ‘mother fund’, providing large-scale capital which is distributed among fund managers with sector-specific expertise.

“Ci Gaba represents the first privately led fund of funds in Ghana and the wider West African region. The fund means ‘progress’ in Hausa. It is designed to strengthen Ghana’s venture capital ecosystem by supporting fund managers who are better positioned to identify and invest in viable businesses within their respective sectors. We are a mega fund that invests in these smaller funds to make sure they are closer to what they are doing,” she elaborated.

This model, she said, is intended to improve the efficiency of capital deployment and expand access to financing for SMEs, which remain a critical driver of economic growth, job creation and improved livelihoods.

Ms. Ismaila indicated that a significant portion of the capital is expected to be raised domestically, reflecting a deliberate strategy to mobilise local resources for national development. “We have some monies coming from outside, but the majority of money is going to be raised from Ghana,” she said

This approach, according to her, is informed by tightening global funding conditions and need for the country to increasingly rely on internal sources of financing. “If we want to develop, we must develop on the back of our own money,” she said.

She also highlighted the role of policy in supporting venture capital growth, calling for an enabling environment that includes appropriate regulations and access to patient capital.

“Businesses require long-term financing structures which allow them to scale sustainably, rather than short-term capital that may constrain growth. Increased investment in SMEs would contribute to job creation, reducing the pressure on government to directly generate employment. If we are able to put in more money in these businesses to grow, they will create a lot of jobs,” she said.

The Ci Gaba Fund is expected to contribute in deepening the nation’s capital markets while improving access to long-term financing for businesses seeking to expand operations and drive economic growth.

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