The Venture Capital Trust Fund (VCTF) has partnered with the 24-Hour Economy Secretariat to provide specialised funding for Ghanaian small and medium enterprises (SMEs), aimed at spurring economic activity and creating jobs.
The partnership follows the signing of a Memorandum of Understanding (MoU) on Monday, March 3, paving the way for a dedicated SME fund to support businesses intending to operate around the clock.
Mr Michael Abbey, Chief Executive Officer of VCTF, disclosed the initiative during a field visit to two portfolio companies supported by Impact Capital Advisors in Accra and the Eastern Region on Tuesday, March 3.
He noted that the initiative would allow portfolio companies to access incentives and dedicated financial assistance to expand operations, with opportunities for integration across sectors such as solar energy to ensure reliable power supply.
“The MoU is geared towards establishing a fund that will support businesses operating 24/7, underscoring our commitment to investing in SMEs and promoting Ghana’s economic growth, stability, and resilience,” Mr Abbey said.
He added, “Patient capital is crucial for building robust businesses. With the 24-hour economy initiative, we are positioning Ghanaian SMEs to compete, grow, and sustain livelihoods in a market that has long been dominated by foreign investors.”
During a portfolio performance review at Riosap Farms Limited, Mr Abbey expressed satisfaction with the growth of the integrated agribusiness, highlighting the impact of patient capital by VCTF. He explained that the field visit provided first-hand insights into the progress, challenges, and opportunities of portfolio companies, reinforcing VCTF’s commitment to transparency, governance, and accountability.
“Our mission is not only about financial returns but also about fostering sustainable SMEs that form the backbone of Ghana’s economy. By combining capital support with governance and performance monitoring, VCTF ensures its investments contribute to long-term economic resilience,” he added.
Mr Richard Osei Appiah, Chief Executive of Riosap, said VCTF’s financing had helped expand the company from fewer than ten employees to nearly forty, increased rice yields from 1.8 to over three tons per hectare, and enabled the construction of a million-dollar warehouse.
“The support from VCTF was crucial in acquiring equipment for rice farming and processing. With this assistance, we have established a rice mill capable of producing 20 tonnes per day, significantly expanding capacity,” he said.
Mr Appiah expressed enthusiasm about the 24-hour economy initiative, noting that it would expand operations, employ youth in agribusiness, and boost production, aligning with VCTF’s goals to drive economic growth and job creation.
He recommended the Fund to other entrepreneurs, highlighting its transformative impact on production capacity, employment, sustainability, and overall business success.
Source: GNA
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