Local players boosting private equity investments –SIMS MD

Mr. Kwabena Boamah, Managing Director of Stanbic Investment Management Services  (SIMS), has attributed the growth of venture capital and private equity investments to the presence and participation of local players in the sector.

Mr. Boamah made this assertion at a report dissemination workshop on the ‘State of Venture Capital and Private Equity in Ghana (1991 – 2023),’ held in Accra.

According to Mr. Boamah, even though it took the country some time to grasp the full extent and understanding of private equity investments, local companies have worked to accelerate growth in the private equity space.

He said “It took us a while to understand the story around private investing and also commit ourselves to it. However, the presence of local players alongside the growth of pension assets have been significant milestones driving investments into the space.” SIMS was the first pension fund manager to aggregate private pension schemes to invest in private equity in 2017.

Mr. Boamah further encouraged the players in the private equity space to tell their success stories and commit to continuous education in order to build confidence in the sector. He noted that “One of the key things that will be significant in building investor confidence in this asset class is to tell our good success stories.

Yes, there will be failures, but we still have to project the successes we make. One of the areas we need to consider is continuous education, because even though there is growth and momentum in the sector, there is still a dearth of knowledge among Ghanaians.”

Ghana’s 20-year-old venture capital and private equity ecosystem has emerged stronger from the challenges COVID-19 posed. Demonstrating resilience and adaptability, it has shown significant growth in both deal volume and value.

The ‘State of Venture Capital and Private Equity in Ghana (1991 – 2023)’ is a baseline report developed by the Ghana Venture Capital and Private Equity Association (GVCA) and Impact Investing Ghana (IIGh).

The report offers an in-depth analysis on the role venture capital and private equity investments have played in fostering economic growth, promoting gender equality, and driving social outcomes since 2004. The report also provides actionable insights to drive the growth of venture capital and private equity in Ghana.

The future landscape of Ghana’s venture capital and private equity sector looks promising. Venture capital and private equity are increasingly important as drivers of economic growth and entrepreneurship not only in our country but Africa in general.

The report reveals that the venture capital and private equity asset class in Ghana has, on average, grown 14.4% a year, and in 2023 it reached nearly $7 billion. This growth has stimulated the creation of over 44,000 direct jobs, but more than that, it has also facilitated access to essential services, including healthcare and education, and even enabled some gains in climate action.

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