Venture Capital Trust Fund to invest $40m in SMEs – General Manager
The Venture Capital Trust Fund (VCTF) has allocated $40 million dollars to invest in Small and Medium-Scale Enterprises (SMEs) in the country with the aim to create jobs and expand businesses.
VCTF, also known as Trust Fund was established by the VCTF Act 2004 (Act 680) with a mandate to focus on investing in venture capital funds dedicated to investing in Small and Medium Scale Enterprises (SMEs).
The investments by the Trust Fund since 2021 forms part of the Ghana Economic Transformation Project (GETP) being funded by the World Bank.
According to the General Manager of VCTF, Hajia Hamdiya Ismaila, the investments would focus on agriculture, agro-processing, waste management, clean energy, light manufacturing, healthcare and education.
She was speaking in Accra yesterday during a workshop for media personnel on the mandate of the VCTF.
In 2021, she said, US$16 million dollars of the allocated fund was disbursed to businesses through Fund Managers who were working with the Trust Fund.
Injaro Investment Advisors Limited, Wangara Capital Partners, Mirepa Investment Advisors Limited and Impact Capital Advisors, she noted, were the Fund Managers which were selected by the VCTF to disburse the first tranche of the allocated funds.
Hajia Ismaila said, per the VCTF Act 2004 (Act 680), the VCTF operates through fund managers, which were licensed by the Securities and Exchange Commission (SEC).
“The Fund Managers act as intermediaries between SMEs requiring funds for viable business projects and the Trust Fund. The Fund Managers are responsible for deal sourcing, selection of SMEs, monitoring as well as exit of investments,” she added.
This year, she explained that, US$11 million dollars of the Fund would be disbursed to some identified businesses through the Fund Managers.
Since its establishment in 2006, Hajia Ismaila said, the VCFT had engaged 11 Fund Managers which invested in more than 63 SMEs, resulting in the creation of about 3,800 and 15,000 direct and indirect jobs respectively.
She noted that, although the fund managers were required to undertake investments on behalf of the fund, the VCTF plays an active role in the growth and expansion of SMEs through regular capacity building engagements.
She stated that, to ensure the effectiveness of the fund managers, the VCTF was in the process of introducing Fund Managers Development Programme to train and enhance the capacity of new fund managers.
Also, the VCTF, she noted, would, in the coming months, launch a women-focused fund aimed at supporting women-owned SMEs across the country.
BY CLAUDE NYARKO ADAMS
