- July 12, 2021
- Posted by: Matilda Frimpong
- Category: GIPC News, News, Press & Media
The Ghana Investment Promotion Centre (GIPC) in partnership with European Union (EU) funded Investment Promotion and Business Linkages Project (the Project), organized the first edition of the Ghana Boardroom Breakfast on Thursday, July 8th, 2021, at the Kempinski Gold Coast City Hotel.
The Boardroom Breakfast meeting provided a platform for stakeholders to explore the potential of Private Equity (PE) as a source of investment for businesses in the agribusiness value chain.
Through an informative session, the event spearheaded a discourse on the challenge in accessing finance for agribusinesses, and the role that relevant stakeholders can play to fill the financing gap.
Issues regarding access to funding, and cost of finance for agribusinesses, have been of major concern to stakeholders in growing economies. The African Development Bank (AfDB) estimated the annual financing gap for Agri-SMEs within the continent at $100 billion. In Ghana, demand for agribusiness funding has soared, most-especially now, when the government embarks on a drive to spur the growth of the sector through initiatives such as the Investing for Food and Jobs (IFJ) program.
The Ghana Boardroom Breakfast, therefore steered conversations on private equity as a source of investment finance for agribusinesses, and its vast opportunities that investors can leverage in Ghana. An array of speakers at the event, delved deeper into issues, as they shared some ‘lessons from experience”.
Key to the discussions, was the need to prepare local companies adequately to attract investment from private equity firms. It was generally established that many agribusinesses seeking funds from private equity firms lacked the necessary documentation and organizational setup to foster the investment process.
Some stakeholders suggested that agribusinesses trying to secure funds from private equity firms could benefit from support from investment intermediaries and advisors, to improve their commercial credibility, which will increase their chances of securing investment.
On the issue of low number of private equity firms in Ghana, some stakeholders called on the government to implement policies to support their establishment, and operations in the country. They called for a predictable regulatory framework, which is not subject to change in political directions.
The discussions also highlighted the need to create more awareness of private equity in the agribusiness community, and its potential to bridge the financing gap.
The event, which was held under the Chatham House Rules, is the first in the series of five Boardroom Breakfast meetings, aimed at engendering discussions between key players on pertinent issues regarding on-going improvements in Ghana’s investment climate.