The Minister of Finance, Ken Ofori-Atta, has disclosed that the World Bank is committed to pump $40 million into the Venture Capital Trust Fund to boost its capacity.
The Finance Minister made this known at the swearing in ceremony of the Board of the Fund and other board members. Ken Ofori-Atta noted that the World Bank facility will complement other government initiatives which is aimed at making the Venture Capital Trust Fund a world class state agency.
“The World Bank is committing some $40 million into the Venture Capital Trust Fund through the National Development Bank for its operations and on-lending to the private sector. The money which is expected before the end of the month will boost the capital capacity of the Fund to enable it strengthen its core mandate of providing support for small and medium enterprises.”
Ken Ofori-Atta
Ken Ofori-Atta indicated that the Government of Ghana will lend her support to Venture Capital Trust Fund in order to supplement the fund from the Bretton Woods institution to help develop the Trust.
“With this $40 million through our resources from the World Bank, they should be able to leverage that. But as I mention, the visible hands of government will always be there to complement the support.”
Ken Ofori-Atta
The Finance Minister opined that he believes the new board members will not repeat the sins of the former board members. He thus noted that the formers administrators who were found guilty are being pursued for prosecution.
“I think lessons have been learnt from the histories of the old board and this is the right time for such funds to support their operations because prosecution is ongoing and other culprits of the former administration are been chased”.
Ken Ofori-Atta
Kofi Yamoah Sworn In As Board Chairman
Meanwhile, former Managing Director of the Ghana Stock Exchange, Kofi Yamoah, has been sworn in as the Board Chairman of the Venture Capital Trust Fund.
He will be leading the team to ensure that the fund plays a critical role in government’s quest to enhance investment for SMEs and make the country a financial sector hub.
Mr Yamoah averred that in accordance with the ACT of establishment, the Venture Capital Trust Fund (VCTF) is to “Provide financial resources for the development and promotion of venture capital financing for SMEs in Ghana by providing financing to eligible Venture Capital Finance Companies (VCFCs) to support SMEs; and the provision of monies to support other activities and programs for the promotion of venture capital financing”
Other members of the board include: Yaw Owusu-Brempong, who also doubles as the Chief Executive, Dr. John A. Kumah, a deputy Minister for Finance and Kosi Yankey-Ayeh, Chief Executive of the Ghana Enterprises Agency. Others are Antonio Kisseih, Mabel Nana Nyarkoa Porbley, Brian Frimpong and Efua Appenteng.
The Venture Capital Trust Fund (VCTF) was established by Venture Capital Trust Fund ACT, 2004, (ACT 680) to provide financing to Small and Medium Enterprises (SMEs). The objective is to promote and support the private sector as an equal partner in achieving the country’s developmental goals by easing access to long-term funding to SME’s.
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