UNCDF, SEC develop comprehensive guidelines for investment-based crowdfunding in Ghana

The Securities and Exchange Commission of Ghana (SEC) and the United Nations Capital Development Fund (UNCDF) have collaborated to develop comprehensive guidelines for equity or investment-based crowdfunding in Ghana.

The guidelines, developed in partnership with key stakeholders, aim to provide financing options for Micro, Small, and Medium Enterprises (MSMEs) and startups in the country.

Speaking at the launch ceremony in Accra on June 19, 2024, Director-General of the Securities and Exchange Commission, Rev. Daniel Ogbamey Tetteh, said the guidelines would provide significant financing options in the capital market.

"In Ghana, we have witnessed the transformative power of crowdfunding in various sectors such as agriculture, healthcare, and entrepreneurship, which have harnessed the collective strength of the crowd to bring their ideas to life," the SEC Director-General said.

"However, the absence of a clear regulatory framework has limited the full potential of this innovative financing model," he mentioned.

The SEC boss emphasized that the guidelines are designed to change this narrative as they will provide a robust framework that protects investors, promote transparency and trust in the crowdfunding ecosystem.

"By establishing clear rules and standards, we are creating an environment where both investors and fundraisers can thrive," Rev. Ogbamey Tetteh added.

As part of developing the guidelines, the United Nations Capital Development Fund played a critical role in driving the formulation of the regulatory framework on crowdfunding in Ghana.

Arianna Gasparri, Technical Lead for UNCDF, said the guidelines encompass a wide range of entities, including crowdfunding intermediaries, companies seeking to raise funds, and foreign entities interested in operating crowdfunding platforms in Ghana.

"UNCDF is indeed meant to work with the government and government agencies to assist with the favorable conditions to crowd-in private capital," Gasparri said.

The launch of the comprehensive guidelines for investment-based crowdfunding has the potential to unlock significant growth opportunities and empower Ghanaian businesses by providing them with access to finance, fostering financial inclusion, and enhancing sustainable finance practices in Ghana.

Through the GrEEN Project, funded by the European Union Trust Fund for Africa (EUTF), the UNCDF has been at the center of pioneering crowdfunding activities in Ghana to help unlock investment for specific sectors traditionally excluded from accessing formal finance options.



MA/NOQ