Venture Capital Trust Fund (VCTF) has disclosed its intentions to invest GH¢200 million of its capital into new funds this year as part of efforts to boost the economic growth of the country.

Mr. Yaw Owusu-Brempong, the Chief Executive Officer of the Fund, explained that the fund is diversifying its portfolio due to low performance of the traditional markets.

The Chief Executive Officer further explained that the African market is providing higher returns, thus necessitating the shift in interest. Mr. Yaw Owusu-Brempong iterated that the objective is to create employment and a sustainable wealth for the citizens.

Speaking at a round table discussion for small and medium scales Enterprises (SMEs) in Kumasi, Mr Owusu-Brempong noted that the Ghana Venture Capital/Private Equity (VC/PE) market is growing rapidly and in the next few years, investment by foreign and local investors would increase.

According to the CEO, 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 deplore 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.”
Mr Owusu-Brempong

Awareness creation and Knowledge Update

Meanwhile, the discussion formed part of VCTF’s awareness creation and knowledge update about the kind of alternative funding VC/PE offers to businesses, especially SMEs and Kumasi. It was themed “Projecting Venture Capital as an Alternative Financing Source for SME Growth”.

Mr Owusu-Brempong stated that SMEs play 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 noted that 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.

Mr Owusu-Brempong 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.

Mr Owusu-Brempong, meanwhile, 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,” Mr Owusu-Brempong said.