Venture Captial marks 20 years’ anniversary in Accra
The Venture Capital Trust Fund (VCTF) has marked its 20-year journey this year, reflecting on its impact on small and medium enterprises (SMEs) in Ghana and the challenges it faces in its activities.
Speaking on the achievements and challenges in Accra yesterday, the General Manager of VCTF, Mr Percival Ofori Ampomah, highlighted how the fund had expanded Ghana’s venture capital ecosystem, despite limited resources.
Mr Ampomah noted that funding remained a critical challenge, particularly since the fund’s original source of financing was repealed with no replacement, leading to irregular funding.
Despite this, the fund has successfully utilised a $40 million investment to support and expand the venture capital landscape in Ghana.
“When we started about 20 years ago, there was no fund manager or venture capital fund available for SMEs,” said Ampomah.
“Today, we have at least 14 funds invested in by VCTF and more from others, venture capital ecosystem in Ghana has grown to include approximately seven billion in total assets, with a significant portion coming from external investors,” he outlined.
However, he said, indigenous fund managers were also contributing, and the goal was to see more local funds in the mix.
Mr Ampomah highlighted that over 90 per cent of VCTF funding currently comes from foreign sources, with local investors slowly gaining interest due to a greater understanding of venture capital and private equity.
“A key challenge for local investment has been a lack of understanding of the asset class. Regulatory restrictions also limited local investment options, but recent regulatory changes are allowing more local participation,” he explained.
To boost local investment, he noted, VCTF is looking to bridge its $105 million funding gap, which would make the trust fund self-sustaining.
Mr Ampomah stressed the need for government support, potentially through partnerships with international institutions like the World Bank.
“The fund previously received $40 million from the World Bank, and another $ 18 million is expected from the Ghana Data Acceleration Project,” he stated.
Looking to the future, he said, VCTF aims to increase local funding and expand its reach to more SMEs.
Moreover, Mr Ampomah expressed hope that in the next 20 years, VCTF would become a cornerstone of Ghana’s SMEs sector, helping to build a more robust economy through local and international partnerships.
The Investment Manager, Abraham Mr Mensah-Belley, said VCTF has significantly boosted small and medium enterprises (SMEs) across the country, many of which have become familiar names to Ghanaians.
“In the last eight years, we’ve shown that even with limited funds, we can create substantial growth,” he underlined.
BY AGNES OPOKU SARPONG