Image: © Development Bank Ghana
DGGF – Financing local SMEs has reached an agreement with Oasis Africa Fund II (OAF II). OAF II is a 10 year investment fund targeting small and medium sized enterprises (SMEs) in West Africa that provide and/or support essential services through scalable business models. These include quality education and healthcare, financial services, housing, food services, manufacturing, and technology enabled companies (fintech, edutech, agritech and healthtech), with a focus on fostering inclusion for underserved populations.
Through OAF II, Oasis will endeavour to achieve specific development goals by targeting investments that offer significant potential to contribute to the United Nations Sustainable Development Goals (SDGs). The primary impact goals are: (i) achieving gender equality and empowering all women and girls, and (ii) promoting sustained and inclusive economic growth, full and productive employment, and decent work for all. Secondary impact goals include: (iii) no poverty, (iv) good health and well being, (v) reduced inequalities, (vi) affordable and clean energy, and (vii) climate action.
In earlier stages, DGGF was the first institutional investor in Oasis Africa Fund I. During this investment, DGGF successfully supported fund manager Oasis Capital Ghana Limited in strengthening its legal function to a level required to attract development finance institutions (DFIs) and other international investors.
Investment
DGGF commits an investment of USD 6 million. With this investment, DGGF contributes to a total expected fund size of approximately USD 50–80 million.
Sector
Essential services and technology enabled sectors (fintech, edutech, agritech and healthtech).