Ghana’s financial securities regulator, SEC, has approved two operating licences for crowdfunding businesses (Grow For Me and Ingwoo Fintech Services) to crowd-in investments and boost entrepreneurial growth. This milestone marks a significant leap forward for Ghana’s burgeoning digital economy and opens new avenues for funding entrepreneurs and small businesses.
Crowdfunding regulation history in Ghana
Ghana’s journey towards a regulated crowdfunding ecosystem began on February 18, 2021, when the Bank of Ghana issued a policy framework to guide the development and use of crowdfunding products and services in the banking sector. The models permitted under the BoG’s policy were donation-based and reward-based crowdfunding, designed to support philanthropic initiatives and creative projects.
Investment-based crowdfunding, however, fell under the jurisdiction of the Securities and Exchange Commission. Recognizing the potential of this funding model to drive entrepreneurial growth, the SEC, with the support of the United Nations Capital Development Fund and Lelapa African FinTech Advisory, embarked on developing robust guidelines for investment crowdfunding.
The process involved extensive stakeholder consultations and technical collaboration. A first draft of the guidelines was released in September 2023, and after incorporating public feedback, the final version was launched in June 2024. The new guidelines balance innovation with investor protection, setting a new benchmark in Ghana’s financial and investment landscape.
Meet the Trailblazers.
Grow For Me
Grow For Me is an agritech platform connecting global investors with Ghana’s farmers. It enables users to sponsor agricultural activities, such as crop cultivation, providing much-needed capital to farmers while offering investors an opportunity to share in the profits. By addressing financing gaps in agriculture, Grow For Me is crucial in supporting food security and rural development.
Ingwoo Fintech Servies
Ingwoo operates the GrowFastFunding crowdfunding platform, which caters to diverse sectors such as technology, education, creative arts, etc. The platform democratizes access to funding, allowing entrepreneurs and creators to bring their visions to life while creating opportunities for investors to support projects they believe in.
