Accra, Jan. 18, GNA – The Venture Capital Trust Fund (VCTF) has created seven funds with investments in over 60 companies, leveraging additional US$89.
The sustainable direct jobs created from these investments totalled 3,400 and 13,500 indirect ones.
Mr Ken Ofori-Atta, the Minister of Finance, said the achievement was made over the last decade and a lot more could be done.
The Minister made this known during the inauguration of the reconstituted Board of Trustees of the VCTF in Accra.
The Fund was established to provide overall venture finance for SMEs has developed with new players entering the market with some National and some Regional funds with some being independent but are in partnership with the Fund.
The members are Mr Kofi S. Yamoah as Chairperson, Mr Yaw Owusu-Brempong, Dr John Ampontuah Kumah, Mrs Kosi Yankey-Ayeh, Mr Antonio Kisseih, Mrs Mabel Nana Nyarko Porbley, Mr Brian Frimpong and Mrs Efua Appenteg as Members.
He said the Fund was a beneficiary of the Ghana Economic Transformation Project (GETP) aimed at promoting private investments and growth in non-resource-based sectors of the economy.
The Minister said the Fund, under the project, was entrusted with the mandate of providing venture financing for early-stage businesses and strategic industries with an investment capital of 40million dollars.
“This is a testament of the Government’s firm faith in the potential of the VC/ Private Equity ecosystem to lead SME development and build unicorns for the country,” he said.
Mr Ofori-Atta said the coming into operations of the Development Bank Ghana presented a major boost to the financial ecosystem as it was positioned to provide wholesale financing for on-lending to businesses.
He said various Government policies such as the 1D1F, Planting for Food and Jobs, and Ghana Care Obaatampa Programme were aimed at building and developing the industrial and manufacturing base in Ghana and to support youth entrepreneurship.
To achieve this, the leveraging of private funding to supplement the effort of the Government is key, and the role for Private Equity and Venture Financing in achieving this aim cannot be downplayed.
The Minister said a survey conducted by the Africa Venture Capital (VC) and Private Equity (PE) Association in April 2020 indicated that West Africa had become an attractive destination for foreign investment and was expected to be the most attractive destination for VC/PE investments over the next three years.
Between 2014 and 2019, investments worth US$10.2 billion were made in West Africa, with Nigeria attracting about 68 per cent and Ghana attracting 22 per cent of these investments.
Mr Ofori-Atta said Ghana was expected to attract more of such investments, especially with the financial sector reforms carried out by the Government, which “we believe has contributed to making Ghana a business-friendly destination to international investors.”
He had, therefore, mandated the new Board to position VCTF to help increase the total value of investment attracted into the country from the current 22 per cent to 35 per cent.
The Minister said the Government remained committed to this agenda and would continue to support the VCTF to deliver on its mandate.
Mr Yamoah assured the Minister of the board’s intention of building a strong corporate governance structure at the Fund.
He said the Fund was looking forward to the release of resources to execute their activities and operations and would continue to lend the needed support to the SMEs.