Investment financing is vital for building the infrastructure, industries, and technologies that drive productivity, create jobs, and support long-term economic growth. Access to finance allows businesses—especially micro, small, and medium-sized enterprises (MSMEs)—to expand, innovate, and generate employment. Yet, in many developing countries like Ghana, public resources fall far short of what’s needed to meet development goals.
In Ghana, the investment funding gap is estimated at around US$6 billion per year. Foreign direct investment also fell from 3.3% of GDP in 2021 to 2% in 2022. To achieve the Sustainable Development Goals (SDGs), Ghana will require more than US$11 billion annually over the next 15 years.
Access to finance remains a major hurdle for entrepreneurs. In 2017, the MSME financing gap in Ghana was estimated at 13% of GDP—or about US$6.1 billion. Impact investing, which seeks both financial returns and measurable social or environmental benefits, has gained momentum as an alternative to traditional MSME financing.
However, building a strong pipeline of investment-ready projects remains a challenge in emerging markets with higher risk profiles, such as Ghana. To address this, the UN Joint Programme on Leveraging Digital Ecosystems for Increased MSME Productivity (Digital JP), funded by the UN Joint SDG Fund, convened key actors in Ghana’s investment landscape. The aim: strengthen partnerships and chart a roadmap for unlocking private capital to support MSMEs.
The forum brought together over 30 representatives from the private sector, UN agencies, and regulatory bodies. Discussions focused on two priorities: how the UN system can help de-risk private sector investments and how businesses can align with UN efforts to advance the SDGs.
Led by the UN Capital Development Fund (UNCDF), the meeting focused on two interconnected development challenges. First, participants examined how catalytic capital can help de-risk investments in underserved markets. The joint programme applies a market systems approach that works across macro, meso, and micro levels of the MSME ecosystem to reduce risks and attract impact investment. Second, the forum addressed how programmes like this can help build the pipeline of early-stage ventures and entrepreneurs that investors need. By supporting these businesses, the initiative helps bridge the “missing middle” that often struggles to secure private sector financing.
Dr. James Klutse Avedzi, Director of the Securities and Exchange Commission (SEC), reaffirmed Ghana’s commitment to building a resilient regulatory framework that protects market integrity while enabling investors to pursue their goals with confidence. He emphasized the value of partnerships with organizations like UNCDF to align regulatory oversight with sustainable development priorities.
Participants noted that one of the greatest challenges facing development finance in Ghana is the scarcity of robust, investment-ready projects that meet both financial and impact criteria.
The Digital Joint Programme, led by the UN Resident Coordinator’s Office and implemented by UNCDF, UNDP, and UNCTAD, is funded by the European Union and the governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, Republic of Korea, Saudi Arabia, Spain, Sweden, Switzerland, along with private sector partners.
More than a funding initiative, this programme focuses on creating systems that make it easier for the private sector to invest in underserved markets. By leveraging UN expertise, it helps mobilize capital and strengthen partnerships between governments, private investors, and MSMEs in pursuit of the SDGs by 2030.
Originally published by UN Ghana.
Note
All joint programmes of the Joint SDG Fund are led by UN Resident Coordinators and implemented by the agencies, funds and programmes of the United Nations development system. With sincere appreciation for the contributions from the European Union and Governments of Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, The Netherlands, Norway, Poland, Portugal, Republic of Korea, Saudi Arabia, Spain, Sweden, Switzerland for a transformative movement towards achieving the SDGs by 2030.
