Deal Source Africa launched to bridge business funding gap
Deal Source Africa, a programme to connect African businesses online with investors, transaction advisors and Impact Funds, launched in Ghana this week at the West Africa Deal summit.
The programme is aimed at bridging the $331 billion funding gap for African SMEs, especially those with high growth potential. It offers solutions that are tailored to meet the SME’s business needs.
Businesses and funds can sign up on the platform, which was developed with financial support from the Research and Innovation Systems for Africa, a Fund of UKAid and piloted in 2022.
The Deal Source Africa platform connects investors with businesses, in-person and through virtual Deal Rooms, while the platform’s Deal Officers facilitate the connections.
Justina Mensah, who leads the Deal Source Africa programme, says the initiative has proved to be a success during the pilot phase, which saw the platform linking 94 businesses to 18 investors in Deal Rooms.
In the trial phase, she adds that 45 businesses were also connected to transaction advisors for one-on-one support leading to three investments being finalised.
Amma Lartey, CEO, Impact Investing Ghana, comments: “The research is clear that growing SMEs can significantly accelerate the achievement of the Sustainable Developmental Goals and that creating more efficient connections between businesses, local funds, and limited partners could help deploy more appropriate patient capital.
“Innovative platforms like Deal Source Africa, built and tested with its users can therefore greatly accelerate the closing of the SME financing gap.”
For Etemore Glover, CEO,Nigeria National Advisory Board for Impact Investing, Deal Source Africa has the potential to become a significant enabler of financing for businesses and local capital providers across Africa.
“We are excited to be able to collaborate with Impact Investing Ghana on this initiative and to see it grow across Africa through our partners in other countries. Africa-wide platforms with strong local partners are essential to fill the financing gap facing our businesses,” he says.