Development Bank Ghana (DBG) has partnered with Oasis Capital Ghana and other Investors in launching the USD 100M Oasis Africa Venture Capital Fund II (OAF II). The fund is earmarked to support Ghanaian and West African SMEs. This initiative marks a significant milestone in DBG’s commitment to fostering private sector growth through support for Small and Medium Enterprises (SMEs) in Ghana.
At a ceremony held on the 9th of July at the Lancaster Hotel in Accra, Oasis Capital Ghana celebrated the successful first close of OAF II, securing US$33.3 million in capital commitments. This initiative marks the first of many such equity endeavors DBG plans to undertake, further diversifying our financial instruments to encompass equity alongside long-term debt.
Speaking at the launch, Michael Mensah-Baah Deputy CEO of DBG said “In Ghana, SMEs are integral to the growth and development of our economy. However, they make up less than 20% of bank credit and source only 10% of their capital needs from financial institutions. Most solutions from financial institutions, like banks, are short-term instruments with high interest rates. Some SMEs and small corporates by their financing needs typically need longer-term financing with flexible terms to stimulate growth. Venture Capital/Private Equity provides patient capital, entrepreneurial support, and enhance the creditworthiness of start-ups and SME’s thereby enhancing their capacity to attract additional rounds of financing from financial institutions and other partners for growth and expansion. This Equity fund of funds product serves as a critical step in our strategy of supporting local businesses with long term capital, by allowing us to channel investments into selected VC and PE firms that demonstrate strong potential to drive SME’s growth in selected sectors.”
In his comments at the launch, Matthew Boadu Adjei, CEO of Oasis Capital Ghana LTD stated that “As the fund manager, Oasis Capital integrates environmental, social, and governance (ESG) considerations into its investment decisions. This commitment extends to a focus on gender lens investing, actively seeking opportunities to promote gender equality and empower women-led businesses”
OAF II will continue the impact-driven investment strategy established by its predecessor funds. The fund targets SMEs in West Africa, with a particular focus on Ghana and Cote d’Ivoire. These SMEs operate in sectors critical to the development of a strong middle class, such as education, healthcare, finance, housing & hospitality, and food services. By targeting businesses with innovative and scalable models, OAF II aims to not only deliver financial returns but also contribute to a more vibrant and inclusive West African economy. While financial performance is important, OAF II prioritizes measurable social and developmental impacts alongside financial returns.
This partnership underscores DBG’s steadfast commitment to providing long-term capital to foster MSME growth in Ghana. Alongside investments from DBG and Oasis Capital, OAF II includes investors such as Venture Capital Trust Fund, GCB Capital, Stanbic Investment Management Services, ENO International, Investcorp Asset Management, CAL Asset Management, PETRA Advantage, PETRA Opportunity, Databank Asset Management, and Standard Pensions Trust, among others.
