VCTF to anchor 24-hour economy with new SME fund

By Joshua Worlasi AMLANU

Venture Capital Trust Fund (VCTF) is set to play a central role in the nation’s economic transformation by launching a new fund aimed at supporting businesses aligned with government’s 24-hour economy policy, Michael Abbey, VCTF’s Chief Executive Officer, has said.

The newly appointed CEO announced plans for the upcoming SME-focused facility during Ghana Venture Capital Trust Association’s (GVCA) Annual Conference in Accra. The fund, currently in early-stage discussions with the 24-Hour Economy Secretariat at the Office of the President, will target existing businesses seeking to scale and boost productivity.

“We are looking at establishing the 24-hour economic SME (small and medium-sized enterprises) fund and this is to support businesses that are already in existence but want to scale up. Of course, we are already having conversations with the secretariat to see how we bring this to fruition,” Mr. Abbey said.

The initiative is part of a broader strategy by VCTF to deepen Ghana’s venture capital and private equity ecosystem, targetting improved access to alternative financing for SMEs. Mr. Abbey, who assumed office five weeks ago, stressed the Trust Fund’s commitment to working with stakeholders on driving job creation and economic growth.

Over the past two decades, VCTF has backed 14 fund managers who, in turn, have invested in about 80 businesses – creating nearly 30,000 jobs. VCTF aims to increase the fund performance of its investee funds and help them raise capital from other investors.

“Our investor contribution is to increase fund managers’ ESG, risk management and value-adding practices,” the CEO stated.

VCTF’s anchor investments, including first-loss positions where needed, helped raise GH¢2 billion across 58 deals. Eight funds have closed, five are still fundraising, and two managers have raised follow-on funds. VCTF also mobilised local financing from banks, pension funds, and insurers, while supporting all 13 funds to enhance operations and risk management.

The CEO noted that several of these companies have since exited the fund’s portfolio and many have become tax contributors to the state, aligning with Ghana’s development goals.

“We are doing all this with the hope and anticipation that we help build Ghana’s venture capital and private equity ecosystem in order to help finance small businesses, create jobs and help develop Ghana’s economy,” he said.

Mr. Abbey also revealed plans to roll out two additional funds including the proposed Ejumera Fund – which will support businesses in the tech space, agritech and those that are women-owned or led. These efforts are in response to government directives to channel investment into the real sector, moving away from an overdependence on government securities.

Frederick Amissah, a technical advisor at the Ministry of Finance, echoed government’s support for the trust fund – noting its evolving role in channeling capital toward high-impact sectors. He said Ghana’s financial architecture is being repositioned to back productive enterprises rather than merely absorbing public debt.

“We are trying to use fiscal policy to direct investment managers away from government securities and into the economy’s real sector,” Mr. Amissah said.

“That includes partnering with institutions like yours to support businesses, create the jobs we need and deliver the growth we are all looking for,”he added.

The move aligns with the ministry’s broader policy of leveraging alternative investment channels such as pensions and private capital to diversify funding sources for businesses.

Mr. Amissah acknowledged the traditional limitations SMEs face in accessing bank financing and said venture capital must be prioritised to address the gap.

“The mantra has been if we do not make the money, we won’t own the money. We see this initiative as key to unlocking productivity,” he further remarked.

VCTF also plans to strengthen its internal operations, expand fund manager capacity and launch its Fund Management Development Programme. This includes recruitment and training under the Venture Capital Analyst Programme, which recently graduated 20 analysts as part of a human capital development agenda.

The trust fund’s newly released impact report, marking its 20-year milestone, outlines achievements and next steps. It reflects on VCTF’s dual mandate – to provide patient capital through fund managers and help build the venture capital ecosystem in Ghana.

The post VCTF to anchor 24-hour economy with new SME fund appeared first on The Business & Financial Times.

Read Full Story