LEDFC transfers ownership to Ghana Growth Fund Company

With support from the US Overseas Private Investment Corporation (OPIC) and the Central Bank of Liberia, CHF International is transferring ownership of the Liberian Enterprise Development Finance Company (LEDFC) to the Ghana Growth Fund Company (GGFC) – a private equity investment firm.

GGFC is well-known for provision of expansion capital for businesses that can achieve high financial returns alongside tangible social benefits. GGFC has disbursed loans to over 500 clients across diverse sectors with a specialization in infrastructure financing.

This transfer will bring a capital infusion to LEDFC, enabling it to continue to provide loans to Liberian SMEs as an African-owned organization.

In 2007, LEDFC was established to provide credit to small and medium-sized enterprises in post-conflict Liberia and to stimulate job growth as part of the country’s road to economic recovery.

LEDFC was created as a nonbank financial institution through a collaborative partnership with the RLJ Companies, OPIC, the Government of Liberia and CHF International.

Since its inception, LEDFC has given 135 loans across all sectors of the economy, including agribusiness, construction and healthcare, disbursing US$7.28 million, which has helped 94 SMEs and created more than 1,000 jobs for Liberians.

Chris Sale, Executive Vice President of CHF International says, “After five years as a partner to the SME sector and Liberian people through LEDFC, we recognized the need for new sources of capital to enable further lending.

CHF International welcomes the new role of GGFC in guiding LEDFC to many future successes in fulfilling its mission of continuing the economic revitalization for Liberia. CHF International continues to partner with the communities of Liberia through our work in water and sanitation and training women entrepreneurs.”

Kwame Ofori Asomaning, Managing Director from GGFC says “LEDFC is currently the only licensed nonbank financial institution in Liberia, giving it the exciting opportunity to continue defining this sector as the bedrock of Liberia’s accelerated economic growth over the long term.

Our finance professionals have decades of experience in emerging markets finance in West Africa, and we are keen to apply our expertise in strengthening corporate governance and management in our efforts to accelerate LEDFC’s growth, profitability, and capital.”

Under GGFC’s management, LEDFC’s objectives will be to: Strategically target the markets of projected unmet credit demand with an innovative finance platform; Provide credit products for the medium-sized and larger SMEs that form the "Missing Middle" between commercial bank customers and the beneficiaries of international donor supported micro-credit programs; and Provide targeted technical and business development services to enhance SME capacities and enlarge the pool of businesses eligible for credit.