By Kelly-Vera Molo
The United Nations Capital Development Fund (UNCDF) has announced a strategic partnership with two Fintech platforms to explore crowdfunding options which will channel remittances into productive investments at the local level in Ghana. One of the chosen Fintech companies is Pezesha, a holistic financial ecosystem connecting undeserved Micro Small and Medium Size Enterprises (MSMSE) with working capital in Kenya. This partnership was launched under the Green project in Ghana during the International Day of Family Remittances event.
The purpose of this partnership is to explore and/or scale up the two Fintechs with the goal of accelerating the process of asset accumulation and access to affordable finance for the creation and expansion of economic opportunities for the beneficiaries while driving financial inclusion and prosperity.
“With Ghana being the second largest recipient of remittances in Sub-Saharan Africa and with many young entrepreneurs looking to family and friends for start-up funds for their businesses, crowdfunding offers the possibility of pooling these funds in a formal structure and building a financial history which will allow Financial Service Providers (FSPs) to better engage these entrepreneurs. While sending money from abroad can be at prohibitive costs, crowdfunding represents a new innovative financing mechanism to channel remittances from diaspora to local MSMEs: families, friends and investors abroad can easily send funds through secured platforms to support local entrepreneurs and their daily activities and businesses.” highlight UNCDP.
As part of the partnerships, UNCDF is providing technical and financial support for design, rollout and implementation of the crowd funding platforms, while at the same time monitoring and learning how such platforms can address the effects of COVID-19 and beyond.
This reflects UNCDF’s goal of providing “last mile” finance models that unlock public and private resources, especially at the domestic level, to help curb poverty and support local economic development.
It will also enable Pezesha’s expansion into the Ghanaian market and scale their financial ecosystem platform to underserved MSMEs through a collaborative approach with local players in the market.