As part of efforts to boost the economic growth of the country, the Venture Capital Trust Fund (VCTF) says it is pumping GH¢200 million of its capital into new funds this year. The objective is to create employment and sustainable wealth for the citizens.
The Chief Executive Officer of the Fund, Mr. Yaw Owusu-Brempong, said the Fund was diversifying its portfolio due to the low performance of the traditional markets. He said the African market was providing higher returns, thus necessitating the shift in interest.
Speaking at a round table discussion for small and Medium Scales Enterprises (SMEs) in Kumasi, Mr. Owusu-Brempong said the Ghana Venture Capital/Private Equity (VC/PE) market was growing rapidly, and in the next few years investment by foreign and local investors would increase.
According to him, the Funds would be pumping another GH¢600 million into the VC/PE space in Ghana. “For us at VCTF, we know that the VC/PE asset class is one of the growth pillars through which we can deploy significant investments directly to fuel the real sector of the Ghanaian economy for economic growth, economic development, job creation, as well as create sustainable wealth.
Through the asset class, monies would also be invested in innovative businesses that could change the dynamics of doing business in Ghana, improve productivity, and ultimately drive economic growth,” he said.
The discussion was part of VCTF’s awareness creation and update knowledge about the kind of alternative funding VC/PE offer to businesses especially SMEs and Kumasi.
It was themed “Projecting Venture Capital as an Alternative Financing Source for SME Growth”.
He said SMEs played an important role in the development of Ghana’s economy, and that as of 2021 over 90 per cent registered businesses were SMEs, contributing 60 per cent to GDP.
Mr. Owusu-Brempong said SMEs being an integral part of the economy, its effectiveness depended on the functionality of the country’s economic environment which had largely been characterised by different challenges.
He used the occasion to applaud the Association of Ghana Industries (AGI) for being a leading voice of the manufacturing industries and taking bold steps in mobilising and advocating policies that advanced the growth and development of industries.
He called on policy makers and investors to see SMEs thrive, to run with VCTF’s vision as it collaborated to build the next unicorns of Ghana.
They must be active in the areas of policy, regulation, finance, business development services, among others.
By Florence Afriyie Mensah