Ghana SEC, UNCDF Launch Crowdfunding Guidelines

The Securities and Exchange Commission of Ghana (SEC) and the United Nations Capital Development Fund (UNCDF) unveiled comprehensive guidelines for equity and investment-based crowdfunding.

This landmark initiative, crafted in partnership with key stakeholders and with substantial technical support from Lelapa African FinTech Advisory, represents a significant stride in Ghana’s financial and investment landscape.

The newly established guidelines are designed to unlock the potential of crowdfunding as a viable financing option for Micro, Small, and Medium Enterprises (MSMEs) and startups, while ensuring investor protection.

They provide a regulatory framework that addresses critical gaps hindering the growth of the entrepreneurial community in Ghana.

The guidelines cover a broad spectrum of entities, including crowdfunding intermediaries, companies seeking to raise funds, and foreign entities interested in operating crowdfunding platforms in Ghana.

Rev. Daniel Ogbamey Tetteh, Director-General of the SEC, emphasized the importance of these guidelines for the capital market during his remarks. He said:

In Ghana, we have witnessed the transformative power of crowdfunding in various sectors; from agriculture to healthcare, entrepreneurs have harnessed the collective strength of the crowd to bring their ideas to life. However, the absence of a clear regulatory framework has limited the full potential of this innovative financing model. The guidelines we launched today are designed to change that. 

UN Resident Coordinator in Ghana, Charles Abani, also underscored the significance of this development, noting Ghana’s leading role in financial innovation within the region and continent. He said:

Ghana’s estimated finance gap is $43 billion annually between now and 2030. We must explore innovative mechanisms that mobilize resources from a broader base. Crowdfunding, with its ability to democratize finance and empower individuals to contribute to causes they believe in, is one such mechanism. It can help finance projects that drive economic growth, social inclusion, and environmental sustainability.

Arianna Gasparri, Technical Lead at UNCDF, expressed UNCDF’s enthusiasm about the collaboration with SEC.

“On behalf of UNCDF, we are very happy to have worked with SEC in contributing to the future of investments and innovative channels for supporting MSMEs in Ghana. UNCDF is indeed meant to work with government and government agencies to assist with the favorable conditions to crowd-in private capital,” she said.

This initiative marks a new chapter for Ghana’s financial sector, potentially transforming the way MSMEs and startups access capital, and setting a benchmark for financial innovation in the region.

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