A Researcher at the Regent University College of Ghana has appealed for the establishment of an impact fund to support social enterprises in the country.
Professor Ernest Asamoah said there are “seemingly non-existent” local funding sources for these ventures in the country” especially in the face of pandemics like Covid-19.
The lecturer said this a sensitisation workshop on the need for impact investing policy and fund event in Accra on Thursday.
“Stakeholders and policymakers can derive alternative financial support from grants and contributions from development financial institutions, 2 per cent levy on alcoholic beverages, 0.5 per cent of the national stabilisation fund, among others,” he said.
The event which was funded by the Business Sector Advocacy Challenge (BUSAC) Fund is targeted at engaging stakeholder to discuss and share best practices for a stronger impact investment policy and the ecosystem in Ghana.
The academic was speaking to a study he undertook on ‘Impact Investing in Ghana, the need for Funds and Policy to support Social Enterprises.’
Prof Asamoah bemoaned how “Even the few funding sources are foreign-owned.”
He noted that having such a Fund would contribute to sustainable development in communities where they operate and give them hope that they have national backing to give off their best.
He added that impact fund and policy would make the sector more visible and identifiable
He noted that there were alternatives to these investments, which policymakers and stakeholders could look at to generate funds in areas such as revenue allocation from the percentage of taxes, and voluntary contributions from corporate organisations, such as mining, oil and gas companies.
Hamdiyiah Ishmael, General Manager for Venture Capital Trust Fund, said there was the need for policy, legal framework, training social enterprises, sensitisation and education on social entrepreneurship modules.
She said this was essential for local investors to support social enterprises through impact investing, adding that, though financial support for them was inadequate there was the need for them to explore alternative financial approaches.
“The Sustainable Development Goals has underscored the need for social enterprises, and impact investing,” she said.
On his part, Edwin Zu-Cudjoe, Executive Director of Social Enterprise Ghana admonished social enterprises to prioritise making impacts in their operations.
“This would lure investors and financial institutions, particularly local ones, to support them,” he said.
The Social Enterprise Ghana is the network of high impact social enterprises and entrepreneurs operating in the country.
It has a registered membership of 590 businesses nationwide operating in climate-smart agribusiness, agroforestry, waste management and recycling among others.