The Abraaj Group, a Dubai-based private equity firm, has acquired a majority stake in Ghana Home Loans (GHL), the leading provider of residential mortgages in the West African state.
GHL was established in 2006 and focuses mainly on offering residential mortgages and other forms of equity release, as well as educating Ghanaian consumers by means of housing fairs and seminars.
For the acquisition, Abraaj disclosed no financial details for the deal, but noted that real estate and finance are the two fastest-growing segments in West Africa.
Commenting on the investment, Jacob Kholi, Partner at The Abraaj Group, said: “We are pleased to be backing the experienced local team that has grown GHL, and we are confident that our support will now consolidate the business’ market leadership position.
“We are also looking forward to creating greater operational efficiency through IT-enabled processes, and looking at broadening its portfolio to include new product offerings.”
The deal is the second for the group in five months, after its acquisition of a prominent Ghanaian dairy firm named Fan Milk International in June. At the time, Abraaj stated that it had so far invested $2.2 billion in 69 companies across Africa.
Abraaj has a history of Ghanaian investments dating back to the mid-1990s, and in July the private equity house also sold its stake in HFC Bank, a Ghanaian lender with 27 branches in the country, to Republic Bank, an independent Caribbean lender.
The Dubai group, founded in 2002 by Arif Naqvi, has about $7.5 billion in total assets.