Growth Investment Partners (GIP) Ghana, an investment platform backed by British International Investment (BII), has announced a significant investment in Truecoco Ghana Limited, a major player in agricultural processing based in Ghana’s Western Region. This partnership represents an essential step toward enhancing Ghana’s agricultural processing capabilities, supporting local farmers, and driving environmental innovation.
Supporting Local Agribusiness Expansion
Truecoco Ghana Ltd, founded in 2017, is dedicated to sourcing raw agricultural materials responsibly, focusing on the ethical procurement of commodities like coconuts and soybeans. With the latest financial backing from GIP, Truecoco plans to expand its soybean processing operations, a move aimed at increasing the company’s capacity and meeting the growing demand for high-quality, locally produced soybean products. This investment is a boost not only for Truecoco but also for over 4,000 smallholder farmers in Ghana who supply the company. By prioritizing fair and sustainable sourcing practices, Truecoco strengthens its commitment to supporting these farmers and creating a reliable supply chain for agricultural products.
Pioneering Carbon Capture with Biochar Technology
A key component of this investment is the development of a biochar carbon removal project, a transformative step toward environmental sustainability. Biochar, a carbon-rich material produced from organic waste like agricultural by-products, improves soil health, retains moisture, and captures carbon from the atmosphere. Truecoco’s biochar project will convert discarded coconut husks and other organic waste from nearby farms into biochar, helping reduce greenhouse gas emissions. By sequestering carbon and enhancing soil fertility, the project aims to support sustainable agricultural practices across Ghana. This initiative aligns with Ghana’s national climate goals and positions Truecoco as a leader in carbon removal technology in West Africa.
Advancing Sustainable Economic Development
The investment aligns with GIP Ghana’s mission to bridge the financing gap for small and medium-sized enterprises (SMEs) in Ghana. Licensed by the Ghana Securities and Exchange Commission, GIP specializes in providing long-term, flexible capital to SMEs in local currency, addressing one of the main challenges faced by Ghanaian entrepreneurs. Truecoco is one of several recent GIP investments designed to spur growth across Ghana’s SME sector, with previous investments including E-Services Africa Ltd, a business processing outsourcing company, and FIDO Micro Credit Ltd, a micro-lending institution. GIP’s strategic support helps these enterprises increase local employment opportunities, contribute to economic resilience, and promote inclusive growth across various sectors.
An Impactful Partnership for the Future
Jacob Kholi, Chief Executive and Investment Officer at GIP Ghana, expressed enthusiasm about the partnership, stating that Truecoco’s success is integral to building Ghana’s agricultural value chain and enhancing food security. Truecoco’s Managing Director, Freddy Lydford, echoed these sentiments, highlighting how GIP’s innovative funding mechanisms align well with the company’s ambitious growth and environmental goals. Lydford underscored Truecoco’s role in mitigating climate change in Ghana and emphasized their commitment to expanding their role in carbon capture and environmental stewardship.
This investment also resonates with BII’s broader mission of sustainable economic development. Kwabena Asante-Poku, BII’s Coverage Director for Ghana, noted that partnerships with companies like Truecoco further BII’s commitment to environmental sustainability, local job creation, and farmer empowerment. BII’s climate finance agenda reflects this dedication, as it plans to allocate a significant portion of its commitments to climate initiatives between 2022 and 2026.
