Norfund and Ghanaian pension fund Axis Pension Trust are joining Growth Investment Partners Ghana (GIP) as co-investors, with a combined commitment of USD 20 million, marking a significant step in scaling an innovative financing model across Sub-Saharan Africa.
Reaching the businesses no one else will finance
Across Africa, most SMEs are too small for private equity and too risky for traditional bank loans, and those that do qualify often face rigid terms that make borrowing impractical. GIP was built to fill this gap.
The platform offers flexible local currency loans combined with hands-on operational and strategic support to each portfolio company, much like a PE fund. Its evergreen structure has no fixed end date: capital repaid through interest and instalments is recycled into new investments, allowing GIP to build lasting partnerships with businesses rather than being forced to exit after a set number of years. Because investments are structured as debt, exit risk — a common challenge for SME-focused funds — is also significantly reduced.
A model built for the long term
GIP offers flexible loans in local currency, combined with hands-on operational and strategic support to each portfolio company — not unlike what a PE fund provides to its investments.
Central to the model is its evergreen structure: there is no fixed end date, and capital repaid through interest and instalments is recycled into new companies. This enables GIP to build long-term partnerships with businesses rather than being forced to exit after a set number of years, as traditional closed-end funds must. Because investments are structured as debt, exit risk (a common challenge for SME-focused funds) is also significantly reduced.
Strong results in just three years
Since its launch, GIP has invested over USD 40 million across 15 portfolio companies in manufacturing, agriculture, financial services and healthcare. The platform has helped sustain over 3,600 existing jobs and create 533 new ones, while delivering strong financial results.
Jacob Kholi, CEO of Growth Investment Partners Ghana, said: “Flexible, local currency capital combined with close support can unlock real growth for Ghanaian businesses. This new capital positions us to scale that impact further.”
Leslie Maasdorp, CEO of British International Investment, added: “The entry of Axis Pension Trustees and Norfund is particularly significant. It demonstrates growing interest in building a stronger base of long-term capital for Ghanaian growth businesses.”
Mobilising local and international private capital
A key ambition for GIP from the outset has been to attract private institutional capital — not just development finance. The entry of Axis Pension Trust, which manages GHS 10 billion on behalf of 300,000 members, is a strong signal that the model is financially viable on commercial terms.
Afriyie Oware, CEO of Axis Pension Trustees, said: “GIP has built a strong team and a sound investment strategy. For us, this partnership reflects our strategic focus on real sector investments that support productive local enterprises and drive sustainable economic growth.”
For Norfund, the investment is also about demonstrating that this type of platform can be scaled and replicated across the region. BII has already established a similar structure in Zambia.
Naana Winful Fynn, Regional Director for West Africa at Norfund, said: “Access to flexible, long-term capital remains one of the key constraints for growing businesses in Ghana. GIP’s approach provides an effective model for addressing this gap, and complements Norfund’s other investments in the country.”
Facts
- GIP was established in 2023 by British International Investment (BII), with an anchor commitment of up to USD 50 million
- Norfund is Norway’s state investment fund for developing countries, with a portfolio of USD 4.1 billion and investments in over 1,200 companies globally
- New capital round: USD 20 million from Norfund and Axis Pension Trust
- Total invested to date: over USD 40 million across 15 portfolio companies
- 3,600+ jobs sustained and 533 new jobs created
- All investments made in local currency (Ghanaian cedi)