Deal Source Africa, a platform dedicated to connecting businesses with investors, has initiated measures aimed at addressing the significant gap in financing for small and medium-sized enterprises (SMEs).
With an aim to facilitate capital-raising for businesses outside traditional banking channels, the platform acts as a matchmaking service – ensuring that businesses with promising products or services led by ethical leaders can connect with investors seeking profitable ventures.
The Chief Executive Officer (CEO) of Impact Investing Ghana, Amma Lartey, lauded Deal Source Africa for its role in linking businesses with investors and fostering the SME sector’s potential for growth.
“Deal Source Africa connects businesses that have great products or services, led by ethical leaders, with investors who want to invest money and make a return,” Ms. Lartey stated in an interview with the B&FT.
She emphasised that the platform not only facilitates connections but also offers free e-learning modules to educate businesses on effective pitching techniques. Deal-officers on the platform provide valuable support to businesses throughout the fundraising process, ensuring they are well-prepared to present themselves to potential investors.
The matching process employed by Deal Source Africa plays a crucial role in ensuring successful connections between businesses and investors. It ensures that the investment sought by a business aligns with the available funds from an investor. Matching involves assessing factors such as the required funding amount, sector focus and team expertise to ensure compatibility between businesses and potential investors. This meticulous process saves both parties valuable time and increases the likelihood of successful partnerships.
While Deal Source Africa encourages businesses to join its platform, the CEO also emphasises the importance of patience. Businesses that fail to find a suitable match are encouraged to evaluate their product or service, and their readiness for investment. “Funds thoroughly review the documentation businesses provide before deciding which ones to engage with. Serious businesses that align with investors’ interests become more attractive to funds, ultimately leading to job creation and economic prosperity.”
The staggering financing gap for SMEs in Ghana is estimated at US$5billion annually, highlighting the urgent need for platforms like Deal Source Africa. As part of their ambitious five-year strategy, Impact Investing Ghana aims to facilitate US$1billion in financing across the country. Their partnership with Deal Source Africa, along with other initiatives – such as the Development Bank Ghana, which plans to invest US$600million in SMEs – demonstrates a collective commitment to bridging this gap.
Despite being operational for only a year, the CEO noted that Deal Source Africa has already witnessed the successful closure of three deals, with several more in the pipeline.
The platform’s success stems from its focus on matchmaking, enabling businesses to secure the capital they need to thrive. Deal Source Africa solely serves as a connection point, leaving the monitoring and oversight of investments to the respective investors. This rigorous monitoring ensures that funds are utilised effectively and generate mutual benefits for both parties involved.