The Venture Capital Trust Fund (VCTF) is committing GH¢35 million to help small and medium-sized enterprises (SMEs) scale up production, create jobs and export to the international market.
The funds were made possible by Mirepa Investment Advisors and Wangara Green Ventures to support SMEs in strategic sectors of the economy.
The VCTF has signed an investment agreement with Mirepa Investment Advisors and Wangara Green Ventures.
This brings the capital deployment towards SME financing to GH¢60 million in two months with the intention of deploying a further GH¢100 million by the end of the year.
VCTF Chairman and Chief Executive Officer (CEO) Yaw Owusu-Brempong signed on behalf of VCTF while Mirepa Investment Advisors Managing Director Samuel Yeboah and Wangara Green Ventures Managing Director Ebenezer Aurthur affixed their signatures for their businesses.
During yesterday’s signing ceremony in Accra, Mr Owusu-Brempong expressed his satisfaction with the agreement, noting that it would pave the way for the parties to work together to develop the venture capital ecosystem. in the country.
“This is a very significant event for the Trust Fund, and more importantly for the venture capital ecosystem in Ghana, and the culmination of many efforts by the VCTF and other key stakeholders.
“Allow me to take this opportunity to once again thank the government for the support and recapitalization of the Trust Fund under the Ghana Economic Transformation Project (GETP) through the World Bank,” said- he declared.
He said the funding for the project has recapitalized the trust fund with $40 million to invest in the start-up and transformational sectors of the Ghanaian economy.
This, he said, was in addition to a $5 million technical assistance facility that enabled the Trust Fund to design some very interesting programs for the development of the VC ecosystem.
Support for SMEs
Mr. Owusu-Brempong said that over the next five years, the VCTF intends to deploy GH¢1.5 billion to support SMEs.
With this amount, he said the VCTF plans to leverage about 5 GH¢ for every 1 GH¢ spent, increasing the capital pool for SMEs to about 7.5 billion GH¢.
He said it was an ambitious plan and called on all major stakeholders in the financial sector and other international agencies to partner with the Trust Fund to make this plan a reality.
“At VCTF, we will continue to support the development of the ecosystem through our technical assistance center,” he added.
Venture capital ecosystem
The director in charge of the financial sector division at the Ministry of Finance, Sampson Akligoh, said that the venture capital ecosystem, which is still under development in the country, was an area that needed to be prioritized as it provided the sources funding alternatives needed. for start-ups to thrive.
He said that in October last year, industry players took a big step by establishing the Ghana Venture Capital and Private Equity Association (GVCA).
“The GVCA is to give a strong voice to industry practitioners in stakeholder engagement and advocacy, drive industry growth, provide legitimacy to its members, and build the capacity of industry players to that they can protect investments and investors,” he said.