MICROCAPITAL BRIEF: Goodwell West Africa Invests $1m in Microfinance Provider Nwabiagya Community Bank of Ghana

Netherlands-based investment fund Goodwell West Africa has agreed to raise its equity share in Nwabiagya Community Bank of Ghana from 14.03 percent to 18.9 percent with a USD 1 million investment.

According to Nwabiagya’s chairman, Nana Owusu Sarfo Anwona, Goodwell has agreed to hold the shares through 2016 after which point Goodwell West Africa expects to sell its stake in Nwabiagya. As part of the deal, representatives from Goodwell West Africa have reportedly advised the management of Nwabiagya Community Bank regarding staff training and the expansion of its existing microfinance portfolio. This will be carried out in conjunction with the bank’s current branch expansion schemes. As of October 2011, Nwabiagya Community Bank’s assets total GHS 27 million (USD 16.9 million).

Goodwell Investments has built and manages microfinance equity investment companies in partnership with organizations in India and West Africa. As of April 2011, these companies have a total committed capital of USD 70 million and are managed as joint ventures between Goodwell Investments and local teams.

By Ariana Malushi, Research Associate

About Goodwell Investments BV: Based in the Netherlands, Goodwell is a for-profit social investment company focused on access to finance and sustainable development. It invests in organizations that are deemed to operate on a socially and commercially sustainable basis. Goodwell Investments has built and manages microfinance equity investment companies in partnership with organizations in India and West Africa. As of April 2011, these companies have total committed capital of USD 70 million and are managed as joint ventures between Goodwell Investments and local teams. Goodwell Investments is the lead investor in Aavishkaar Goodwell, a business development company in India. Goodwell Investments is also an investor in Goodwell West Africa, a business development company in Africa. In 2011, Goodwell announced that it will expand the scope of its impact investing services to include small and medium-sized enterprise finance, water & sanitation, health care and renewable energy.

About Goodwell West Africa: Goodwell West Africa is a private equity investment company that aims to invest in entrepreneurial based microfinance organizations on a socially responsible and commercially-sustainable basis. Goodwell West Africa is in partnership among Netherlands-based Goodwell Investments, Nigeria-based Alithea Capital and Ghana-based JCS Investment Limited. No financial information is available for Goodwell West Africa.

About Nwabiagya Community Bank: Nwabiagya Community Bank is a Ghanaian bank based in the Ashanti region. Nwabiagya’s deposits are primarily composed of savings from rural communities which it then uses to loan to microenterprises. As of October 2011, Nwabiagya Community Bank’s assets total GHS 27 million (USD 16.9 million).

Sources and Additional Resources:

Goodwell Update, Http://goodwell.nl/news.html – okt11

Modern Ghana, http://www.modernghana.com/news/353820/1/dutch-company-to-buy-equity-in-rural-bank.html

MicroCapital.Org story, 13 Apr 2011. “MICROCAPITAL BRIEF: Goodwell Investments Expands Beyond Microfinance to Include SME Finance, Health, Renewable Energy,” https://www.microcapital.org/microcapital-brief-goodwell-investments-expa…

MicroCapital.Org story, 13 Apr 2011, “Goodwell Investments BV and JCS Investments Announce First Close of $60m Equity Fund for Microfinance in Nigeria and Ghana”
https://www.microcapital.org/microcapital-brief-alitheia-capital-goodwell-investments-bv-and-jcs-investments-announce-first-close-of-60m-equity-fund-for-microfinance-in-nigeria-and-ghana/

MicroCapital Universe Profile: Goodwell Investments BV, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Goodwell+Investments+BV

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