A new initiative, the Follow-On Finance Initiative, has been launched to offer affordable financing and tailored business support to Ghanaian entrepreneurs. This initiative aims to empower growth-ready businesses with the necessary resources to expand operations, create jobs, and generate income opportunities across the country.
Building on the successes of the WIDU.Africa project, the Follow-On Finance Initiative is designed to bridge the financing gap for small and medium-sized enterprises (SMEs), helping them scale up their operations. The project seeks to facilitate business growth by providing financial support and advisory services, ensuring that entrepreneurs can effectively manage and utilize the resources for sustainable growth.
The initiative is expected to play a pivotal role in driving economic growth, supporting entrepreneurial development, and fostering job creation in Ghana’s dynamic economy. By offering customized support and financing options, the Follow-On Finance Initiative will enhance the capacity of local businesses to contribute to the broader economy, creating a positive ripple effect in communities across the nation.
The Follow-On Finance Initiative is a collaborative effort between Advans Ghana Savings and Loans Ltd., Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, and is supported by funding from the German Federal Ministry for Economic Cooperation and Development (BMZ). This partnership aims to extend the impact of the WIDU.africa project, which has proven to be a key driver of entrepreneurial growth and economic development across the continent.
Since its inception in 2019, WIDU.africa has played a crucial role in empowering micro and small businesses in Africa, with a particular focus on Ghana. By leveraging diaspora remittances and combining them with coaching and funding, WIDU.africa has supported over 6,000 businesses across the continent. The platform has proven to be instrumental in fostering economic growth and job creation, with nearly 3,000 jobs created and sustained in Ghana alone through its interventions.
WIDU’s model provides a unique approach to development by connecting the African diaspora with entrepreneurs back home, channelling financial resources and expertise into businesses that are poised for growth. This combination of funding, mentorship, and networking opportunities has contributed to the sustainability and expansion of small enterprises, boosting local economies.
The Follow-On Finance Initiative builds on these successes, providing tailored financing and business support for growth-ready businesses in Ghana. This initiative offers an affordable financing model that helps entrepreneurs scale their operations, ultimately leading to job creation and income generation. By offering these resources, the initiative aims to stimulate inclusive economic development and create long-term opportunities for businesses across various sectors. Advans Ghana is a leading provider of innovative financial solutions, dedicated to empowering Ghana’s entrepreneurial ecosystem. With a deep commitment to fostering sustainable growth and financial inclusion, Advans Ghana has become a trusted partner for small and medium-sized enterprises (SMEs), particularly those looking to scale operations and expand their impact.
The Follow-On Finance Initiative builds on Advans Ghana’s reputation and expertise in supporting Micro, Small, and Medium Enterprises (MSMEs). By providing tailored financial solutions, Advans Ghana ensures that these businesses have access to the resources and support necessary to grow sustainably. The initiative targets businesses that are ready to expand, offering both financing and business development support. This comprehensive approach is designed to help businesses overcome growth challenges, while also contributing to job creation and income generation across Ghana.
Advans Ghana’s extensive experience in working with MSMEs, combined with its solid track record in financial inclusion, makes it an ideal partner for the Follow-On Finance Initiative. The partnership aligns with Advans Ghana’s ongoing mission to enhance the financial capacity of Ghanaian businesses, while also contributing to the broader economic development of the country. By partnering with GIZ and other key stakeholders, Advans Ghana is further strengthening its role as a driving force in economic empowerment and entrepreneurial growth in Ghana.
The Follow-On Finance Initiative is designed to transition entrepreneurs from receiving grant-based support to accessing more structured financial solutions that are specifically tailored to meet their growth needs. The initiative will begin with a pilot phase in November 2024, where around 90 entrepreneurs will be engaged. These entrepreneurs will benefit from specially designed loan products aimed at supporting their business expansion while continuing to receive coaching and mentorship to ensure they can effectively use the funds for long-term success.
By providing these entrepreneurs with not only financial support but also guidance on how to manage and utilize the loans, the Follow-On Finance Initiative seeks to strengthen the sustainability of small businesses, improve their financial management skills, and help them achieve scalable growth.
The initiative is a critical step toward creating economic independence and job creation across Ghana, with a clear focus on helping entrepreneurs grow from initial stages to more established and competitive businesses. It aims to enhance business performance while providing ongoing support, ensuring that entrepreneurs have both the capital and the knowledge they need to thrive in a challenging business environment.
The Follow-On Finance Initiative is designed to provide entrepreneurs with both working capital and investment loans under favourable terms to support their business growth and ensure long-term sustainability. These loans will help businesses scale operations and create more opportunities for job creation and economic growth in Ghana.
Entrepreneurs will receive personalized coaching from WIDU coaches, who will guide them through every step of the loan process. This includes assistance with loan applications, as well as practical advice on how to effectively utilize the funds to scale their businesses. The coaching will help ensure that the entrepreneurs not only access capital but also learn how to use it effectively to grow their businesses. To ensure the successful implementation of the initiative, there will be regular follow-ups to track the usage of loans and measure their impact on job creation and income growth. This ongoing monitoring will help assess the effectiveness of the loans in driving sustainable growth and the long-term success of the businesses, as well as evaluate the broader economic impact.
Through this initiative, the goal is to create a robust ecosystem where small businesses can thrive, create jobs, and contribute to Ghana’s economic development while benefiting from continuous support and guidance. The pilot phase of the Follow-On Finance Initiative will serve as a learning platform to assess its effectiveness and gather insights that will inform a wider rollout. This phased approach ensures that the program remains responsive to the needs of Ghana’s entrepreneurial community, allowing it to scale and have a greater impact across the country.
Entrepreneurs who are part of the WIDU.africa network and are eligible for the initiative will be contacted by their assigned coaches to begin the application process. For any further inquiries or clarifications, entrepreneurs can reach out via email at ghana@WIDU.africa.
The Follow-On Finance Initiative represents a crucial step toward empowering Ghana’s entrepreneurs by providing them with the necessary resources to expand their businesses, create more jobs, and contribute to economic development. Through a strategic collaboration with development partners and financial institutions, this initiative is designed to foster sustainable business growth and help reduce unemployment, reinforcing Ghana’s position as a leader in entrepreneurial innovation and job creation in the region.
