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Union Capital Investment Bank · Accra
Private Markets Research

Private Credit and the Financing Gap for Ghanaian SMEs

By Louis Appiah Harrison · Union Capital Research
In short

Private credit can fill part of Ghana's SME financing gap where bank lending is constrained, provided deals are structured around real cash flows with covenants that protect both borrower and investor.

Despite a deep banking sector, many viable Ghanaian SMEs remain underserved — too large for microfinance, too small or too unconventional for traditional bank credit. Private credit can bridge that gap.

Structuring for durability

The discipline is in the structure. We underwrite to demonstrable cash flows, size facilities to debt-service capacity, and use covenants that give early warning rather than punitive triggers. The aim is financing that helps a business grow, not debt that strains it.

What investors get

For institutional and high-net-worth investors, well-structured private credit offers an income stream with lower correlation to listed markets — at the cost of liquidity, which must be understood up front.

Apply this to your portfolio

Speak to a Union Capital advisor about what it means for you.