UNCDF and FIDO Start Phase Two MSME Digital Finance

In Short

UNCDF and FIDO Microcredits have started phase two of a partnership to expand digital financial services for Ghanaian MSMEs. The focus is on women-led and youth-led businesses.

What Happened

The United Nations Capital Development Fund and Fido Microcredits signed a new phase of work to widen access to digital finance in Ghana.

UNCDF is providing a US$200,000 grant for phase two. The partners expect the funding to help catalyse US$1 million in loans and savings. “Catalyse” here means the grant is meant to unlock more money from FIDO’s lending and savings activity, not just be spent as cash support.

The partnership sits inside a broader UN programme led by UNCDF, UNDP, and UNCTAD, working with Ghana’s Ministry of Trade, Agribusiness and Industry. The programme is funded by the Joint SDG Fund, and it targets digital transformation and financial inclusion for micro, small, and medium-sized enterprises.

Phase one focused on research, prototype development, and field testing across the Western, Ashanti, and Northern regions. According to the project update, the team engaged 470 MSMEs through field research, including focus groups and interviews, to map financial behaviour, needs, and gaps.

The pilot also adjusted product requirements to better fit informal businesses. One change was removing formal business documentation requirements from FidoBiz, making it easier for informal MSMEs to access services.

The programme positions three tools as key interventions: Fido Credit for lending, EasySave for savings, and Fido Academy for financial literacy training.

Why It Matters

Many Ghanaian MSMEs operate informally and struggle to meet bank documentation rules, which blocks access to credit and savings products. By simplifying onboarding and expanding digital channels, the partnership could help more small businesses build a transaction record, access working capital, and improve money management.

UNCDF also framed the grant as a 1-to-4 leverage target. That means every US$1 deployed should trigger at least US$4 in additional loans and savings activity. The project is expected to run until around July, giving FIDO roughly a year to scale the pilot into broader reach across underserved communities.